The government has announced the first sovereign gold bonds of the financial year a few days ahead of Akshaya Tritiya, considered auspicious for buying gold.
The applications for Sovereign Gold Bonds 2017-18 - Series I will be accepted from April 24 to 28, and the bonds will be issued on May 12. Akshaya Tritiya falls on April 28 this year.
The issue price of the gold bonds will be Rs 50 per gram, less than the nominal value. The price will be finalised by the Reserve Bank of India on Friday after the closure of Mumbai spot market. However, investors will be given a discount of Rs 50 on that price for buying bonds. The interest rate will be 2.50 per cent per annum and payable semi-annually on the nominal value. Considering the average of the past four days and after the discount of Rs 50 on price, it will be available at Rs 2,901 per gm. However, the average price will be calculated considering Friday’s rate.
The first issue was announced in 2015. So far, the government has sold 14 tonnes of gold bonds. Bonds were announced on November 5, 2015, along with the sale of Ashok Chakra-embossed gold coins and gold monetization scheme. Sovereign gold bonds are the most successful schemes among others.