Gold has become cheaper by about Rs 7000 per 10 grams from its all-time high. Despite this ups and downs, experts predict that gold may touch 63000 levels this year. In such a situation, there is a good opportunity to invest in gold in front of investors and the Modi government is going to sell cheap gold at market rate once again, that too on the budget day i.e. from February 2021. If you want to invest in gold till 5 February, Modi government is giving another chance to buy cheap gold. You can invest in government sovereign gold bonds. However, it will not be available in gold physical form. The issue price for sovereign gold bonds has been set at 4,912 per gram, the Reserve Bank of India said in a statement on Friday.
Rs.500 off on 10 grams
According to RBI, in consultation with the central bank, the government has decided to give a rebate of Rs 50 per gram to investors for applying online and making payments through digital means. The issue price of gold bonds for such investors would be 4,8620 per 10 grams. Gold Bonds issue 2020-21 on behalf of the Government of India.
10 Highlights of Sovereign Gold Bond 11th Series
1. Modi government has brought gold bonds at a time when domestic prices are cheaper by around Rs 7000 per 10 grams after reaching new heights. The subscription to the 11th series of the Sovereign Gold Bond Scheme 2020-21 will be closed after 5 February 2021.
2. The price of Rs 4,912 per gram has been fixed for this installment of Gold Bond. The gold bond is based on the published general average closing price of 999 purity gold by the Indian Bullion and Jewelers Association Limited (IBJA).
3. Sovereign gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. The Sovereign Gold Bond Scheme was launched in 2015 with the objective of reducing the demand for physical gold and transferring a portion of domestic savings to financial savings.
4. In the Sovereign Gold Bond Scheme, a person can buy up to 500 grams of gold bonds in a financial year. There is a minimum investment of one gram.
5. You can invest in Sovereign Gold Bonds 2020-21 (Series XI) till 5 February. The bond will be issued on February 9, 2021.
6. Bonds are subject to liquidity on stock exchanges within a fortnight of issue.
7. Investor PAN is required with every application of SGB. The gold bonds will be sold through banks, Stock Holding Corporation of India (SHCIL), designated post offices and recognized stock exchanges (NSE and BSE).
8. Its most important thing is that the investor gets the benefit of increasing the price of gold. Also, they get 2.5% guaranteed fixed interest on the investment amount.
9. These bonds have a duration of 8 years and premature withdrawal can be done only after the 5th year.
10. It will be subject to long term capital gains tax after three years (Capital gains tax will not be levied till maturity) while you can use it for loan.
