Sovereign gold bond opens for subscription: Benefits of SGB over other forms of gold
Premium- Sovereign gold bond: Online broking firm Zerodha listed out the benefits of SGB over other forms of gold
The second tranche of the Sovereign Gold Bond (SGB) Scheme 2022-23 opened for subscription today, August 22, 2022. SGB scheme will remain available for subscription until August 26. On Friday, the Reserve Bank of India (RBI) fixed the issue price of Sovereign Gold Bond Scheme 2022-23 – Series II at ₹5,197 per gram.
The government, in consultation with the Indian central bank, will be offering a discount of ₹50 per gram on the value to those investors who will apply online and the payment against their application is made through the digital mode.
“For such investors, the issue price of Gold Bond will be ₹5,147per gram of gold," the central bank said in its statement.
The RBI issues the bonds on behalf of the Centre.
Sovereign gold bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges -- NSE and BSE.
Online broking firm Zerodha listed out the benefits of SGB over other forms of gold.
Benefits of SGBs over other forms of gold
1)You get a fixed 2.5% interest every year
2)Guaranteed by the Government of India
3)No expenses or other charges. Gold ETFs & funds charge up to 1%.
Sovereign Gold Bonds saw maximum traction in COVID-hit years
Amid volatility in equity markets, investment in SGBs went up sharply during COVID-impacted years in 2020-21 and 2021-22 accounting for nearly 75 per cent of total sales of the bonds since the inception of the scheme in November 2015.
During 2021-22 and 2020-21, the two COVID-impacted financial years, investors bought the bonds for an aggregate amount of ₹29,040 crore or about 75 per cent of the total sales of the SGBs since its launch.
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