IN PICS! Gold price cheaper by Rs 10,000 per 10 gm, with the possibility of buying more from March 1st

If you want to buy gold at a lower price than the bullion market, March is a golden opportunity for you.

The central government is giving the common man a chance for this. The government has decided to sell sovereign gold bonds from March 1.

Do not let this golden opportunity go by hand, because gold is priced at around Rs 10,000 per 10 grams from its all-time high, yet it is not available in physical form. Reserve Bank of India has set the issuance price of sovereign gold bonds at 4,662 per gram.

According to the RBI, the government has decided to offer a discount of Rs 50 per gram to investors to apply online and pay via digital methods in consultation with the central bank. The issuance price of gold bonds for such investors is 4,6620 per 10 grams. Issue of Gold Bonds on behalf of Government of India 2020-21.

1. The Modi government has brought in gold bonds at a time when domestic prices are rising to Rs 10,000 per 10 grams after reaching new heights.

The Sovereign Gold Bond Scheme 2020-21 Subscription to Series 12 will cease after 5 March 2021.

The Gold Bond for this episode is Rs. 4,6620 per gram. The gold bond is based on 999 purity gold of normal average maturity published by the Indian Bullion and Jewelers Association Limited (IBJA).

The Reserve Bank of India (RBI) issues sovereign gold bonds on behalf of the government. The sovereign gold bond scheme was launched in 2015 with the aim of reducing physical gold demand and transferring a portion of domestic savings to financial savings.

In a sovereign gold bond scheme, a person can buy 500g of gold bonds during the financial year. There is a minimum investment of one gram.

You can invest in Sovereign Gold Bond 2020-21 (Series XI) until March 5th.

Bonds are subject to liquidity in stock exchanges within fifteen days of issuance.

Investor PAN is required with every application of SGB. Gold bonds are sold through banks, stock holding corporations of India (SHCIL), designated post offices and accredited stock exchanges (NSE and BSE).

The key issue is that investors get the benefit of raising the price of gold. Also, they get a fixed interest rate of 2.5% on the investment amount.

These bonds have a maturity of 8 years and can be issued prematurely only after the 5th year.

It is subject to a long-term capital gains tax after three years (no capital gains tax is levied until expiration) but you can use it for a loan.