INSUBCONTINENT EXCLUSIVE:
Sovereign Gold Bonds are available at an issue price of ₹ 4,790 per unitSovereign Gold Bond 2021-22: The fifth tranche of the
government-run sovereign gold bond scheme will close for subscription today - August 13, 2021
An issue price of ₹ 4,790 per unit, equivalent to the value of one gram of gold, is applicable for the fifth installment of the gold
bond scheme 2021-22, according to the Reserve Bank of India (RBI). The date of issuance for the tranche is set as August 17, 2021. The
fifth tranche window opened for investors on August 9 and ends today, remaining open for a period of five days, as per the schedule set
for the gold bond scheme 2021-22.The state-run gold bond scheme - on behalf of the RBI, has become a popular means to invest the yellow
metal in a non-physical form, especially amid the COVID-19 pandemic
Gold bonds are considered to be safer for investment and are linked to the market price of the precious metal. (Also Read: What Are
Sovereign Gold Bonds? Here's All You Need To Know )After the current series, the gold bond scheme will be available for subscription for
one more time. Resident individuals, universities, Hindu Undivided Families (HUFs), trusts, and charitable institutions can invest in the
The interest-paying gold bonds can also be used as collateral for loans.Should You Buy?“The price for the fifth tranche of SGB is fixed at
Investment in non-physical gold, via digital or paper gold, is highly recommended as it provides high liquidity, no storage cost, and is
easier to sell vs physical gold
Investment in SGBs comes with an interest coupon payable semi-annually
Investment in SGB is a superior alternative to physical gold
The investments in non-physical gold will help the government to keep a check on the currency and larger fiscal deficit.The rising US dollar
and Treasury yields on the back of a sooner than expected policy tightening by the Fed have largely led to softening of gold prices
Gold prices domestically and internationally have traded in a narrow range in the past few months.The latest variant of the virus, the pace
of vaccination, unlocking, and signs of policy tightening by the Fed will guide gold prices going forward,'' said Mr
Nish Bhatt, Founder and CEO, Millwood Kane International - an investment consulting firm. Discount For Online SubscribersA discount
of ₹ 50 per unit is applicable for all those subscribers who are investing in the gold bond scheme online, according to the RBI
For the online subscribers - who make the payment through any o the digital modes - the issue price is set at ₹ 4,740 per gram of gold
in the fifth tranche of sovereign gold bonds 2021-22 scheme.How To Invest In Sovereign Gold BondsOne can invest in gold bonds through the
nationalised or private banks (excluding the small finance and payments banks), the stock exchanges - Bombay Stock Exchange and National
Stock Exchange, Stock Holding Corporation, or at the designated post offices.The process for purchasing gold bonds is similar to that of
the gold exchange-traded funds (ETFs) through a stock exchange
Once the whole transaction is complete, the bonds are transferred to the buyer's account in a demat form, according to the RBI.
