Sovereign Gold Bond subscriptions open on July 12: Buy gold at great prices for 5 days

New Delhi: The Reserve Bank of India (RBI) is opening the fourth tranche of Sovereign Gold Bond Scheme 2021 for subscriptions on Monday (July 12) for five days. Investors planning to invest in gold can choose the option of the sovereign bond, as it is usually more affordable than current rates. RBI has fixed the issue price at Rs 4,807 per gram for the latest Sovereign Gold Bond offering. 

In an official announcement, RBI said, “The nominal value of the bond based on the simple average closing price (published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period July 07, July 08 and July 09, 2021, works out to Rs 4,807/- per gram of gold.” 

What are Sovereign Gold Bonds? 

The RBI had introduced Sovereign Gold Bonds in 2015. Basically, these bonds are similar to other government bonds. However, Sovereign Gold Bonds are denominated in grams of gold, instead of money. 

Who can buy Sovereign Gold Bonds? 

At present, Resident individuals, Hindu Undivided Family (HUF), Trusts, Universities and Charitable Institutions can subscribe to Sovereign Gold Bonds. 

What is the minimum investment in Sovereign Gold Bonds? 

According to the current rules, an investor has to buy at least one gram of gold during the subscription window. This means that you’ll invest at least Rs 4,807 in Sovereign Gold Bonds. 

Meanwhile, an individual investor can buy a maximum of 4 Kg gold. However, the upper cap limit for trusts and similar entities is 20 Kg. 

What is the minimum tenure of Sovereign Gold Bonds? 

Sovereign Gold Bonds are offered with a tenure of eight years. However, investors are given an option to exit after the fifth year itself. 

How to buy Sovereign Gold Bonds? 

Investors can buy gold bonds from commercial banks, Stock Holding Corporation of India Limited (SHCIL), post offices designated by RBI and recognised stock exchanges. Customers can buy gold bonds directly or even through their agents. Also Read: Facebook removed 5,381 malicious accounts, Groups in June

How to get Sovereign Gold Bonds at a discounted price?

Investors can also invest in gold bonds online. RBI is offering a discount of Rs 50 per gram to investors buying bonds completely online. Also Read: SBI alert! Net banking services will remain suspended on July 10, 11, check timings

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