Gold prices continue to record highs due to the Corona epidemic. Sovereign Gold Bond investors are getting a lot of benefits. Investors received a 12% return in just 20 days. At the same time, about 80% returns have been found in the last four years. Consider that the price of gold per gram in Gold Bond Series-4 was set at 4,852 grams. At the same time, starting from August 3, the price of Series-5 has been fixed at Rs 5,334 per gram. At the same time, gold prices reached Rs 54,538 per ten grams on Friday. Thus, due to the market price, Sonarwan Bond is getting gold at a lower price of one thousand rupees. At the same time, when the sovereign bond was introduced in 2015, the price of one gram of gold was fixed at Rs 2682. After almost four years, the price has more than doubled. In that case, if you dropped the investment in the last Sovereign Gold Bond, there is a chance. From 3 to 5 August you will be able to invest again. You can buy bonds through commercial banks, select post offices and stock exchanges. Eight-year lock-in period: Before investing, you need to know how old the lock-in period is on a sovereign bond. Luckin means you can’t withdraw money before then. Gold bonds have an eight-year lockin period. However, you can make money by selling the fifth year unit.
Discount on online application
Investors who buy gold bonds online and make digital payments get a discount of Rs 50 per gram. Also, in all the gold bond schemes issued so far, the price of gold has been lower than the market price. That means you can invest cheaper than gold at market value through sovereign gold bonds. In addition to the benefits of raising the price of gold by investing in bonds, it provides an annual interest of 2.50%. Interest is paid within six months. The minimum investment limit for these bonds is one gram.
How much gold discount
The smallest bond under this scheme is equal to 1 gram of gold. A person can buy a maximum of 500 grams of gold bonds in a financial year. Overall, the individual bond purchase limit is 4 kg, but for trusts or firms it is 20 kg.
Five to 10 percent gold is required in the portfolio
Experts say investors should currently keep 10% of their total allocations in gold to balance their portfolios. Gold bonds are a good option for this. Its most unique feature is that it is supported by the central government, which is issued by the RBI. It also earns interest at an annual rate of 2.5 percent. At the same time, it has no problem managing like physical gold.
Better option according to investment
If you want to invest in gold, it is better than buying physical gold. There is no problem preventing it from selling. Able to invest with less money.
No tax is levied on profits
Capital gains tax (capital gains tax) is not levied on profits earned from gold bonds after maturity. However, this discount does not apply to the sale of gold bonds through the stock market before maturity. If the gold bond is sold within three years of purchase, it is taxable for short-term capital gains. Gold bond interest tax is levied according to the income tax department. Also, there is no GST on this or TDS is not exempted in case of investment.
The sharp trend of investors in 2020
Series Date Issue Price / 10g Kg Total Sales
Series-1 28, April 46,390 Rs 1,773 822
Series-219, May 45,900 Rs 2,544 1,168
Series-3 16, June 46,770 Rs 2,388 1,117
Series-4 14, July 48,520 Rs 4,131 2,004
Total 10,836 5,112
Annual investment in sovereign gold bonds
FY Issue Price / 10g Sale Total Amount Kg
2015-16 26,882 4,903 1,318 Rs
2016-17 30,567 Rs 11,388 3,481
2017-18 29,042 6,525 1,895 Rs
2018-19 31,659 Rs 2,031 643
2019-20 37,775 Rs 6,131 2,316
2020-21 * 47,171 10,836 5,112 Rs
Note: Series-5 and Series-6 are coming in 2020-21 *
The amount of crores of rupees
- There is no risk of default from being supported by the Indian government
- Easy and safe to compare to a physical boy
- It is very easy to withdraw money from it
- With the rise in gold price, the interest rate benefit is two and a half percent per annum
- Freedom to start investing from a village