Sovereign Gold Bond 2021-22 Scheme: 4th tranche to open on July 12

If you want to buy cheap gold or invest in gold, Monday is a great opportunity for you. The fourth tranche of Sovereign Gold Bond Scheme 2021-22 is starting from Monday i.e. 12th July. The sale will run until July 16. The price of gold in the series has been fixed at Rs 4,807 per gram by the Reserve Bank. Meanwhile, the RBI issues sovereign gold bonds on behalf of the government. In this case, if you are going to invest, know the details ....

The fourth installment of the Sovereign Gold Bond 2021-22 will open for five-day subscription from Monday. According to the RBI, investors will also get a rebate of Rs 50 per gram if you apply and pay for Sovereign Gold Bonds online. Of course, online shoppers will be able to buy Sovereign Gold Bonds at Rs 4,757 per gram.

Where can you buy Sovereign Gold Bonds?
You can buy gold bonds online. Apart from this, it is sold through banks, all commercial banks (except RRBs, microfinance banks), stock holding corporations of India Limited, selected posts and NSE as well as BSE. You can join the bond scheme by going to any of these places. They are not sold between small finance banks and payment banks.

How much can be invested?

These Sovereign Gold Bonds are issued by the Government through the Reserve Bank of India (RBI). Under this scheme, a person can buy a maximum of 4 kg and a minimum of 1 gram of gold bonds in a financial year. In addition, trusts or similar institutions can purchase a maximum of 20 kg of bonds. Applications issued for this are in 1 gram or more. According to the RBI, the price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.

What is Sovereign Gold Bond (SGB)? Who is the issuer?

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. The government launched the Sovereign Gold Bond in November 2015.

Why is investing in Sovereign Gold Bonds profitable?

>> Sovereign gold bonds become tax free at maturity.
>> There is no fear of default as it is being issued by the Government of India.
>> Gold bonds are easier and safer to handle than physical gold.
>> It does not have the problem of purity and the prices are determined on the basis of the purest gold.
>> The exit option is also easy. Loans are available on the basis of gold bonds.
>> It has a maturity period of 8 years. Also, you get the option to sell after 5 years.