Sovereign Gold Bonds are available at an issue price of Rs 4,912 per unit
Sovereign Gold Bond: Series XI of the Sovereign Gold Bond scheme is open for subscription till tomorrow, February 5. The Government-run gold bonds, linked to the market price of gold and offers additional returns, are one of the few options to invest in the yellow metal in a non-physical form. After this series, the gold bond scheme will be available for subscription, one more time in March 2021. For the eleventh installment of the gold bond scheme, an issue price of ₹ 4,912 per unit, equivalent to the value of one gram of gold, is applicable, according to the Reserve Bank of India. (
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Buy gold in black & white
Buy RBI-issued Sovereign Gold Bonds rather than physical gold for investment purposes. Investors pay the issue price, which is based on current gold value and the bonds are redeemed on maturity at prevailing gold prices. Unlike physical gold investment, you will get interest @2.5% p.a. on money invested in bonds.
Updated Feb 02, 2021 | 14:32 IST
When you sell your physical gold, the gain is subject to capital gains tax. But there is no capital gains tax if Sovereign Gold Bonds are held till maturity. Representational image
Key Highlights
The net reduction in both gold and silver customs duty will be 2.5 percentage points even after adding the farm cess.
Buying physical gold is going to become cheaper by nearly Rs 1,200 per 10 gram
Silver prices will come down by Rs 1,750 per kg due to the duty cut
New Delhi: The government proposed to reduce import duties on gold and silver to 7.5% from 12.5% now. But a farm cess of 2.5% will be added to customs duty. So the net reduction in both gold and silver will be 2.5 percentage points even after adding the farm cess. It means buying physical gold is going to become cheaper by nearly Rs 1,200 per 10 gram while silver prices will come down by Rs 1,750 per kg due to the duty cut. Those who prefer to buy gold jewellery
Read This to Know All About Withdrawing Sovereign Gold Bonds Before Maturity
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Sovereign Gold Bonds (SGBs) are substitutes to physical gold and are government securities denominated in the yellow metal. Investors of SGBs are given a holding certificate. The tenor of the SGB is eight years, however, if the investors want to withdraw the bond before this period, then the facility is available after the fifth year from the date of issue on coupon payment dates. If the bond is held in the demat form, it is tradable on exchanges or the sovereign gold bond can be transferred to any other eligible investor.
The outlook for gold is bright despite the vaccination drive. Due to the sharp economic downturn, central governments across the world have been continuously pumping money into the financial system.