Gold Bonds

Scheme said to have outlived its purpose of reducing physical gold imports

The primary cause of the rupee's fall against the US dollar is the latter's broad-based strengthening against major global currencies

Latest data from the central bank shows that 510 metric tonne of gold is held domestically

Strong outlook for gold, absence of SGB issuances also among factors

Recently, SGB investors have expressed concerns due to market fluctuations and the government's decision to lower the customs duty on gold which may result in reduced returns on their investments

Sovereign gold bonds have caught the fancy of investors who bought Rs 27,031 crore worth of the bonds last fiscal, an amount more than four times invested in 2022-23 on the prospects of higher returns and tax benefits. The bonds bought by investors represented a whopping 44.34 tonne of gold during 2023-24. In 2022-23, Sovereign Gold Bonds (SGBs) representing 12.26 tonne of gold were purchased for Rs 6,551 crore. "The aggregate sum raised during 2023-24 amounted to Rs 27,031 crore (44.34 tonne)," said the annual report of Reserve Bank, which issues the bonds on behalf of the central government. During the fiscal ended March 2024, the bonds were issued through four tranches. Since the inception of SGB scheme in November 2015, a total of Rs 72,274 crore (146.96 tonne) has been raised through 67 tranches. The price of 24 karat per 10 gram of gold has gone up from about Rs 62,300 to Rs 73,200 in one year. SGBs are government securities denominated in grams of gold. They are substitute

The price of 22-carat gold also dipped Rs 10, with the yellow metal selling at Rs 67,640

The government launched the first SGB in November 2015, and the first two issues have matured giving significantly high tax-free returns to investors

The bonds can be bought through agents or receiving officers (ROs), and applications must be submitted to branches during the weeks of subscription

Sovereign Gold Bond interest rate: These bonds bear interest at the rate of 2.50% per annum on the amount of initial investment. Interest is credited semi-annually to the bank account of the investor

The Reserve Bank of India (RBI) on Friday said the issue price for the next tranche of Sovereign Gold Bond has been fixed at Rs 5,923 per gram and will open for subscription from September 11. "The nominal value of the bond based on the simple average of closing price (for gold of 999 purity)... works out to Rs 5,923 per gram of gold," it said, while announcing the issue price of Sovereign Gold Bond Scheme 2023-24 Series II (second tranche). The government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to investors applying online and making the payment against the application through digital mode. For such investors, the issue price of gold bond will be Rs 5,873 per gram, it said. The issue will be open from September 11-15, according to the statement. The bonds will be sold through banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and recognised stock exchanges -- the NSE and the BSE. Th

The RBI further said that the second tranche (2022-23 Series II) will be available for subscription during August 22-26, 2022

Gold is up 5.8 per cent over the past month and 8.9 per cent over the past year, with a large part of it coming in February, after escalation of tensions between Russia and Ukraine

The Sovereign Gold Bond Scheme 2021-22 - Series X will be open for subscription for the period from February 28 to March 4

Gold prices firmed on Tuesday as Russia-Ukraine concerns kept the safe-haven metal supported near the previous session's over one-week high

The bonds will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges -- NSE and BSE

Avoid them if you might require liquidity in the near term as you may have to sell them at a discount on the exchanges

The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22, which will open for subscription for five days from August 30, has been fixed at Rs 4,732 per gram of gold, the RBI said

The central bank's gold reserves stood at 705.6 tonnes as on June 30. The gold reserves were at 558.1 tonnes in the beginning of 2018