PHOTOS

Gold jewellery vs Gold Bond: Why gifting a bond is better than investing in jewellery

New Delhi: The Reserve Bank of India (RBI) opened the fourth tranche of Sovereign Gold Bond Scheme 2021 for subscriptions on July 12 for five days ending today i.e. on July 16.

If you’re planning to invest in gold then you can consider subscribing to sovereign gold bonds because of the several benefits it offers over physical gold. In the ongoing sovereign gold bond offering, the RBI has fixed the issue price at Rs 4,807 per gram.

Zee Media Bureau|

Updated:Jul 16, 2021, 12:51 PM IST

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Assured returns

Investments in sovereign gold bonds offer assured returns to investors. At present, sovereign gold bonds investments provide returns at a 2.5% annual interest rate. The returns are paid two times a year.

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Safer and cheaper than physical gold

If you invest in sovereign gold bonds, then you don’t need to worry about the safety of gold stored in your locker, which is usually the case with physical gold. Sovereign gold bonds are kept with the government and are one of the safest investment options.

Moreover, you don’t have to pay GST and making charges while investing in sovereign gold bonds. This means that you’ll be buying gold at cheaper prices than compared to physical gold.

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No capital gains tax

At the time of redemption of sovereign gold bonds, individual investors don’t have to pay capital gains tax on their investments. The freedom from capital gains tax makes sovereign gold bonds an attractive investment option.

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Liquidate when you want

In case you need money for some emergencies, you can easily liquidate your investments in sovereign gold bonds. You can sell bonds anytime via the stock exchange if held in your Demat account.

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Collaterals for loans

Your sovereign gold bond investments can act as collateral for a loan. All major banks in India, including the State Bank of India (SBI), offer advances against sovereign gold bonds at attractive interest rates.