New Delhi: The issue price for the sovereign gold bonds scheme 2022-23 (Series-IV), during the subscription period is set to Rs 5,611 per gram.
However, the government, in consultation with the Reserve Bank of India, has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode.
For such investors, the issue price of gold bonds will be Rs 5,561 per gram of gold.
The scheme is open for subscription till March 10 and the settlement date would be March 14.
Is it a worthy investment?
Many Indians see gold as one of the safe investment options. However, most of them make mistake by buying physical gold as an investment.
Buying physical gold for investment is the worst option as a significant chunk of the amount goes into making charges and GST. Apart from it, physical gold has a risk of impurity.
In the case of sovereign gold bonds (SGBs) which are government securities, there is no GST and making charges. No capital gains tax will be levied after five years of investment.
Though SGBs that are denominated in grams of gold have a lock-in period of five years, it is tradable on exchanges providing an option to liquidate the investment easily. However, if liquidated before five years, investors have to pay capital gains tax.
How does sovereign gold bonds scheme work?
SGBs are government securities that are denominated in grams of gold. After a period of eight years – with an option to exit after five years-, investors will get an amount based on the gold rate at that time.
Apart from getting the benefit from the appreciation of the gold rate, the investors will also get 2.5 percent per annum payable semi-annually on the nominal value.
