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Yellow Metal Bonds Available Till January 1 2021

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The gold bonds come with a maturity period of eight years.Bonds linked to the market price of gold under the government's Sovereign Gold Bond scheme are available for subscription for three more days, till January 1, 2021.

This is the ninth tranche of the SGB or Sovereign Gold Bond programme — in which the Reserve Bank of India (RBI) issues bonds linked to the market value of the yellow metal on behalf of government — which opened for subscription on December 28.

After the current instalment, the gold bond scheme will open for subscription for five days each three more times till March 2021. Issue PriceFor the ninth tranche of gold bonds this financial year, an issue price of Rs 5,000 per unit is applicable.

(Also Read: Here Is How Sovereign Gold Bond Price Is Calculated)Important DatesAfter the current instalment, which ends for subscription on Friday, January 1, the gold bond scheme will be available from January 11 to January 15, February 1 to February 5 and March 1 to March 5. (Also Read: Gold ETFs Or Bonds — When To Go For Which And Why)DiscountA discount of Rs 50 per unit is applicable for those investing in the Sovereign Gold Bonds online.

That means the price of such investors will be Rs 4,950Lock-In PeriodThe gold bonds come with a maturity period of eight years, with an option to exit after the first five years.Interest RateA fixed rate of 2.5 per cent per annum is applicable on the Sovereign Gold Bond scheme, payable semi-annually. Eligible InvestorsThe scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.Investment LimitGold bonds can be purchased in the multiples of one unit, up to certain thresholds for different investors. The upper limit for retail investors and HUFs is 4 kilograms (4,000 units) each per financial year.How To InvestThe SGBs are sold through commercial banks, the Stock Holding Corporation, designated post offices, and stock exchanges BSE and NSE.

The bonds are held in RBI books or in demat form.TaxThe interest earned from gold bonds is taxable.

However, the capital gains arising out of redemption are exempted for individual investors.Gold ReturnGold has appreciated around 32 per cent so far this year, which makes 2020 the second best year for the yellow metal since the 2008 global financial crisis.




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