RBI Gold Bond window opens today, should you subscribe?
RBI Gold Bond window opens today, should you subscribe?
Last Updated: Mon, May 24th, 2021, 11:06:50hrs
India s Sovereign Gold Bond Scheme managed by the Reserve Bank of India is open to subscriptions from today.
The central bank in a press release said the window for subscriptions will be open from Monday for four days. The subscription closes on May 28 2021.
The price of Gold for the Series II 2021-22 Gold Bond has been determined at Rs 4,842 per unit. Each bond is equivalent to the price per gram of 24 karat or 999 gold.
Payments to subscriptions made online or in digital mode are offered a discount of Rs 50 per unit. Hence, the issue price works to Rs 4,792 per unit.
Sovereign gold bonds scheme opens today; should you subscribe?
Gold/ representative pic
Are you looking for a hedge against inflation? Do you want to add gold to your portfolio? You may consider putting money in sovereign gold bonds. These are government securities that are denominated in grams of gold. You may invest in sovereign gold bonds if you want a substitute for physical gold without the hassles of storage expenses and making charges. Should you invest in the sovereign gold bond scheme?
What are sovereign gold bonds?
Sovereign gold bonds or SGBs are government securities issued in denominations of grams of gold. You can pay the issue price in cash and redeem the bonds on maturity in cash.
Highlights
Available for subscription from May 24.
Subscription will close on May 28.
Mumbai: The Sovereign Gold Bond Scheme 2021-22 - Series II or the second tranche is available for subscription from today (May 24).
The issue opens today for subscription and will close on May 28. The issue price for the second tranche of the sovereign gold bond issue has been fixed at Rs 4,842 per gram, the Reserve Bank of India said.
The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India. The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period. Works out to Rs 4,842 per gram of gold, the RBI said in a statement.
Prospective bidders can bid for a minimum of 1 gm of gold at Rs 4,842 per gram against Rs 4,777 per gram for the previous tranche. There will be a Rs 50 discount for prospective investors that will bid online. The issue closes on Friday, May 28.
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