Sovereign gold bond: Here is another opportunity to buy cheap gold. Reserve Bank is opening treasury after 2 days. You can buy cheap gold under the Sovereign Gold Bond scheme. RBI has announced that cheap gold will be available for purchase between June 19 and June 23. You can buy gold through online and offline modes. It is noteworthy that gold bond is not included in the ambit of GST. In addition, guaranteed returns are also available.
RBI fixed the gold price for the eighth series of Sovereign Gold Bond Scheme. This time the price of gold is Rs 5,926 per 1 gram. However, it can be invested both online and offline. 50 per gram for those paying through online application and digital payment. Exemption will be available i.e. gold will be available at Rs 5,876 per gram, the scheme will be open from 19th June to 23rd June 2023.
Get Purity Gold
In Sovereign Gold Bonds, you invest in 24 carat or 99.9% pure gold. It can be invested online and offline. Investment in SGBs earns 2.50% interest per annum. If money is needed, a loan can also be taken on bond. The price of the bond is determined based on the published rate of Indian Bullion and Jewelers Association Ltd i.e. IBJA.
In this, the average of the last three days’ rate of the week preceding the subscription period is calculated. Next we are telling you about Sovereign Gold Bond so that you can earn profit by investing in it.
What is a Sovereign Gold Bond?
A sovereign gold bond is a government bond. It can be converted into demat form. If the bond is worth five grams of gold, then the bond is worth five grams of gold. It is given by RBI.
Don’t worry about purity and safety
There is no need to worry about accuracy in SGBs. The price of gold bonds is linked to the gold price of 24 carat purity published by the Indian Bullion and Jewelers Association (IBJA) as per the National Stock Exchange (NSE). Along with this, it can be kept in demat form, which is quite safe and costs nothing.
You can invest in a maximum of 4 kg of gold
Through SGBs, an individual can invest a minimum of 1 gram and a maximum of 4 kg of gold in a financial year. In case of joint holding, the investment limit of 4 kg is applicable to the first applicant only. At the same time, the trust’s maximum purchase limit is 20 kg.
Taxable if withdrawn before 8 years
Bond does not attract any tax on the profit earned after the maturity period of 8 years. On the other hand, if you withdraw your money after 5 years, the profit will be taxed at 20.80% in the form of Long Term Capital Gain (LTCG).
RBI has provided many options to invest in offline as well . Investments can be made through bank branches, post offices, stock exchanges and Stock Holding Corporation of India (SHCIL). Investors have to fill the application form. After this the money will be deducted from your account and these bonds will be transferred to your demat account.
PAN is mandatory for investment. Bonds are sold through all banks, Stock Holding Corporation of India Limited (SHCIL), recognized stock exchanges, National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
Returned 120% in 7 years When
the Sovereign Gold Bond scheme was launched in 2015-16, it was priced at Rs 2,684 per gram. As much as There was a discount of Rs 50 on this. That is, the price is Rs 2,634. The now released Sovereign Gold Bond series is priced at Rs 5,926. With a discount of 50, the price has now reached Rs 5,876. Thus, in the last 7 years, this scheme has given a return of around 120%.
How to invest?
Ajay Kedia, Director, Kedia Commodities, says that it is better to invest in gold for long term as it is unaffected by fluctuations and you get proper returns. Returns in gold will be decent for at least 3 to 5 years. If we look at the upcoming 1 year, gold may go up to 65 thousand.
