Sovereign Gold Bond 2023-24 Series-II opens today: Check the issue price, discount and other details here

The latest tranche of the Sovereign Gold Bond (SGB) scheme will go live for subscription from today and close on September 15, according to the Reserve Bank of India (RBI). The settlement date for this tranche is set for September 20.

The nominal value of the bond based on the simple average of closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. September 6, September 7, and September 8 works out to Rs 5,923 per gram of gold.

The government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and making the payment against the application through digital mode. For such investors, the issue price of Gold Bond will be Rs 5,873 per gram of gold.

The SGB scheme is a government-backed investment plan allowing investors to own gold non-physically. Its main advantage is that it eliminates the storage and security concerns associated with holding physical gold. Launched in 2015, the scheme also provides an additional fixed interest on the invested amount.

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This latest tranche of the scheme brings a new opportunity for investors who are hopeful of benefiting from gold’s traditionally strong performance as a safe-haven investment. The SGBs will be denominated in multiples of a gram(s) of gold, making them an accessible way for many individuals to invest in the precious metal.

Unlike physical gold, SGBs don’t incur any making charges or Goods and Services Tax. Moreover, they offer investors an annual interest of 2.5 per cent, payable semi-annually on the nominal value, adding to the profit margins for those opting for this form of investment. Furthermore, it is important to know that SGBs have a maturity period of 8 years.

Investors can purchase these bonds via commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges directly or through their agents. The minimum permissible investment is 1 gram of gold, and the maximum limit is 4 kilograms for individual investors.

The fact that the Reserve Bank of India, a highly recognisable financial entity, backs the SGB scheme gives it additional credibility and reliability. This is the kind of financial investment opportunity that aims to provide investors with the utmost financial security while also allowing them to benefit from the long-term profitability of gold.