Sovereign Gold Bond subscription ends today says Government

Sovereign Gold Bond subscription ends today says Government. The fourth SGB tranche, which opens for subscription on Monday, expires on Friday 2020-21.

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Sovereign Gold Bond subscription ends today says Government. The fourth SGB tranche, which opens for subscription on Monday, expires on Friday 2020-21. The Government set the bond issue price at Rs 4,852 per gram for the subscription duration. Online investment, as long as you have an account with demat, will be much easier than by physical application.

Gold has been through an incredible season. So far, in the futures market, it has risen more than 25 percent, reaching a new peak of over Rs. 49,000 per 10 grams this year.

Gold bonds have an eight-year term span but after the fifth year, creditors would have an opportunity to withdraw. If some, the capital gains are tax-free after maturity. That’s an exclusive gold bond value.

Investors gain double profit of sovereign gold bonds: they obtain a set coupon of 2.5 percent, if there are any, over the earnings growth.

Sovereign Gold Bonds

In fact, alongside saving on GST and making charges by spending in SGB. Rather than purchasing gold jewelry, you won’t even have to pay maturity capital gain fee.

Several investors tend to be optimistic regarding gold. Also citing worries about the world economy and US-China strains. And potential for more support from world central banks.

In periods of economic instability, gold is deemed a secure refuge, and a protection against inflation. While the SGB is incredibly stable, it may contribute to a capital loss possibility if gold rates drop as the gold market is redempted or mature.

In 2015 , the government unveiled the sovereign gold bond scheme to minimize demand for tangible gold and move a portion of domestic savings into financial assets.

Though physical demand of gold remains weak due to lockdown related restrictions and surging coronavirus crisis, investment demand for gold has remained strong this year across the globe.

Holdings in gold-backed ETFs across the world increased to 3,234.6 tons this week, according to initial data compiled by Bloomberg. That’s up 655.6 tons so far in 2020.

The RBI in April had announced that the government will issue sovereign gold bonds in six tranches till September.

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