If you are planning to invest in gold, then the government has once again brought Sovereign Gold Bonds for you. The first sale of Sovereign Gold Bonds for FY 2021-22 will start from May 17 and will run till May 21. According to information received from the Union Finance Ministry, Sovereign Gold Bonds will be issued in 6 installments between May and September. This scheme of bonds to be issued by the Reserve Bank (RBI) can also be invested through banks. However, its price has not been given yet.
Sovereign gold bond is a government bond. It can be converted into demat form. Its value is not in rupees or dollars, but in the weight of gold. If the bond is of five grams of gold, then the price of five grams of gold will be the same as the price of the bond. To buy it, the authorized broker of SEBI has to pay the issue price. At the time of redeeming the bond, the money gets deposited in the investor’s account. The bond is issued by the Reserve Bank of India (RBI) government.
RBI is issuing these bonds on behalf of the Government of India. According to the RBI, “The bond price is based on the simple average closing price (published by the India Bullion and Jewelers Association) over the last 3 working days for 999 purity gold.” Those who apply for these online and pay through digital payment will get a discount of 50 rupees per gram.
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