Price per unit?
The Reserve Bank has announced the pricing of the third issue of Sovereign Gold Bonds for the financial year 2023-24. 6,199 per unit of gold bond equivalent to one gram of gold of 24 carat purity has been fixed for this year. Meanwhile, if the application for gold bond is made online and the payment is made through digital transaction, a concession of Rs 50 per gram of gold bond will be allowed. In other words, for online buyers, one unit of gold bond will have to pay Rs 6,149.
When to apply?
The issuance of the third series of sovereign gold bonds for the current financial year will begin on December 18. The deadline to apply is December 22. The opportunity is available for five days. The first two series of Sovereign Gold Bond issued by the Reserve Bank with full central government guarantee, for the financial year 2023-24, were completed between June 19-23 and September 11-15. The fourth series of Gold Bond remaining in this financial year will debut from February 12 to 16, 2024.
Where to buy?
Gold Bonds can be purchased from Scheduled Commercial Banks, Stock Holding Corporation of India, Clearing Corporation of India, selected Post Offices, National Stock Exchange (NSE), Bombay Stock Exchange (BSE).
Who can buy?
Hindu Undivided Families (HUF), Trusts, Universities and Charitable Institutions can buy Sovereign Gold Bonds as defined in the FEMA Act, 1999 by any person resident in India. Meanwhile, NRIs can hold the gold bond till maturity.
How much to buy?
At least one gram of gold bond unit should be purchased. Whereas in a financial year (April – March) individuals can buy a maximum gold bond equivalent to four kilograms. Similarly, a Hindu undivided family can buy a maximum of four kilograms. But trusts and similar bodies notified by the government can purchase gold bonds of a maximum equivalent of 20 kg during a financial year.
How much income?
The biggest feature of the Sovereign Gold Bond, which holds all the rights to physical gold, is that it earns interest at 2.5 percent per annum. The tenure of the bond is eight years. Whatever the market price of 24 karat physical gold is at that time, the same price level will be the value of the gold bond.
The sovereign gold bond issued by the RBI for the first time in 2015 had expired on November 30. Investors got 128 percent capital gains. Including eight years of interest, the total return on the first sovereign gold bond rises to 150 percent.