Sovereign Gold Bond scheme 2021-22: Series 9 opens today. Should you subscribe?
Premium- Issue price of the Sovereign Gold Bond scheme 2021-22 series 9 has been fixed at ₹4786 per gm
Sovereign Gold Bond (SGB) scheme 2021-22: Five day subscription of the 9th series of SGB 2022 is opening today. The subscription will remain open for bidders till 14th January 2022. The Reserve Bank of India (RBI) informed in a statement that SGB price has been fixed at ₹4,786 per gram, ₹5 per gm lower from its previous tranche. Online subscribers will be given ₹50 per gm relaxation as issue price for those bidders who pay digitally while applying has been fixed at ₹4736 per gm.
Here we list out important details in regard to Sovereign Gold Bond scheme 2021-22 series 9:
- Subscription date: Subscription for the 9th tranche of Sovereign Gold Bond scheme 2021-22 opens today and it will remain open for bidding till 14th January 2022.
- Issue price: As mentioned above, issue price of the Sovereign Gold Bond scheme 2021-22 series 9 has been fixed at ₹4786 per gm.
- Discount for online subscribers: The Government of India (GoI), in consultation with the RBI, has decided to offer a discount of ₹50 per gram to those investors applying online and the payment against the application is made through digital mode.
"For such (online or digital) investors, the issue price of gold bond will be ₹4,736 per gram of gold," the RBI said.
- Investment limit: Minimum permissible investment allowed in Sovereign Gold Bond scheme is one gram of gold. The maximum limit of subscription is 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).
- KYC eligibility: The know-your-customer (KYC) norms will be the same as that for purchase of physical gold.
- Where to apply: Sovereign Gold Bond scheme 2021-22, series 9 will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges — NSE and BSE.
- Subscribe or not: Whether one should apply for the Sovereign Gold Bond scheme 2021-22 series 9; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, "Compared to current MCX gold rate, the issue price seems on the higher side by around ₹30 to ₹35 per gm. As outlook for gold for next fortnight is sideways with negative bias, we are expecting further correction in gold price and MCX gold price may come below ₹47,000 as US Fed has announced that interest rate hike can be announced sooner than expected. So, by the end of subscription date of this series, there can be further correction taking place in gold price and hence my suggestion to investors is to wait for next series as the current series may turn out dearer by near ₹50 per gm by the end of its subscription on 14th January 2022."
Echoing with Anuj Gupta's views; Nish Bhatt, Founder & CEO at Millwood Kane International - an Investment consulting firm said, "Currently, gold prices are trading near a 2-month low. Gold prices are almost ₹9000 per 10 gm down from their peak witnessed in 2020. The weakness is mainly due to the minutes of the US Fed that indicated a faster rate hike and also a reduction in bond buying than earlier estimated. Going forward, the pace at which the global central banks will unwind their monetary position, movement of the US dollar will guide gold prices in the year 2022."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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