The Reserve Bank’s (RBI) first issued Sovereign Gold Bond (SGB) matures on November 30, 2023. RBI has also announced the rate per unit as part of the return of money to those who invested in the bond. A gold bond unit, equivalent to one gram of gold of 24 carat purity, is priced at Rs 6,132. In this context the yield from the first Sovereign Gold Bond is detailed below.
Issue price and interest
At Rs 2,684 per gram, the gold bond issued on November 30, 2015 was issued to investors. In other words, those who invested Rs 1 lakh in 2015 would have received a gold bond equivalent to 37 grams of gold at Rs 2,684 per unit (one gram). [ഇതിനുവേണ്ടി 99,308 രൂപയാകും (37 * 2,684) ചെലവായത്].
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Apart from this, interest is paid at the rate of 2.75 percent per annum on the first deposit amount. So there is hardly any additional income in the form of interest along with the capital gain of gold. This is a factor that increases the rate of total gain from gold bonds.
Buyers of the gold bond first issued by the RBI in November 2015 had a total return to maturity of over 150 per cent. The bottom line is that the investment has increased by one and a half times in eight years. This yield is calculated by adding together the capital gains and interest earned on the gold bond units.
A gold bond unit issued at Rs 2,684 in 2015 will be redeemed at Rs 6,132 per unit upon maturity in November 2023. That is, 1 lakh rupees invested in 2015 rose to 2,26,884 rupees by the end of eight years. The yield is 128.46 percent. Similarly, 584.33 rupees have been received as interest from one unit in eight years.
Then, from a gold bond of Rs 1 lakh, the investors have received a total of Rs 21,620 as interest in eight years. Thus, taking into account eight years of interest along with the capital gain, the total return from a gold bond of Rs 1 lakh purchased in 2015 would be Rs 248,504. That means gross profit is 150 percent.
Sovereign Gold Bond
Sovereign Gold Bond is a gold investment scheme launched by the RBI to limit the impact of physical gold imports on the country’s currency, the rupee, and to utilize resources effectively. The first phase gold bond was issued on 30 November 2015. The investment period is eight years. Depository documents of gold bond are available in demat and paper forms. Gold bond can be bought through banks, post office, stock exchange.
Meanwhile, the Sovereign Gold Bond ensures the same price as gold in the market as all the rights to the physical gold are assigned and fully backed by the central government. Therefore, it can be said that there are no risk factors in investment. Individual investors can invest in gold bonds with a minimum of one gram and a maximum of 4,000 grams in a financial year. At times of need for cash, gold bond units can also be used as collateral to secure loans.