SGB Return: Good days have come for those who invested in Sovereign Gold Bond (SGB) 8 years ago. They have got a return of 122 percent on SGB. Investors who bought these bonds in the series that came 8 years ago have now got tremendous returns. The Reserve Bank has announced the redemption price for the bonds of that series.
New Delhi: There is good news for those investing in gold bonds. Sovereign Gold Bond (SGB) has given 122 percent return to investors in 8 years. Let us tell you that the Reserve Bank of India (RBI) has announced the redemption value for the first installment of the Sovereign Gold Bond Scheme in the year 2016. This value has been declared as Rs 6938 per gram (per unit). At the time of investment 8 years ago, its value was fixed at Rs 3119 per gram. In such a situation, gold has given 122 percent return in these 8 years. Payment of redemption value to investors has been started from Monday.
SGB is a scheme of the central government. These bonds are issued by the Reserve Bank. They can be purchased through various banks and financial institutions. This scheme was started in 2015. Its series is issued from time to time by the Reserve Bank. Its maturity is 8 years. On Monday, the maturity of the series which was issued in August 2016 was completed. The investors who had bought these bonds in August 2016 can redeem them. These investors have earned Rs 3819 per gram of gold bond.
This is how the price is decided
The price of Sovereign Gold Bond is decided by Bullion and Jewelers Association Limited on the basis of simple average of three days’ value of 999 purity gold. Currently, 2.5 per cent annual interest is being given on investing in this scheme. This amount of interest is given on every 6 months basis. In this scheme, bonds are purchased on the basis of units. One unit means one gram of gold. Government reduced the value in the budget
The central government presented the budget last month. In this, the government has cut the gold bond. That is, now fewer gold bonds will be issued than before. It is being told that this scheme is proving to be an expensive deal for the government. According to an official, the government is planning to issue ‘paper gold’ worth Rs 18,500 crore in 2024-25. Rs 29,638 crore was estimated in the interim budget and Rs 26,852 crore (revised estimate) was kept in 2023-24. At the same time, speculations are also being made that the government may also close this scheme in the coming time.
Impact due to custom duty
In the budget, the government had reduced custom duty on metals like gold, silver etc. The effect of this decision of the government was visible on the same day. On the day of the budget itself, the price of gold had decreased by more than 4 thousand rupees per 10 grams. Its effect lasted for many days. However, now some increase is being seen in gold and it has again crossed 70 thousand rupees per 10 grams.
