Sovereign gold bond opens subsequent week. Date, worth, different particulars; apply or not?

Issuing a press assertion in regard to sovereign gold bond worth, date and different particulars, RBI mentioned, “Sovereign Gold Bond Scheme 2023-24 – Series II will be open for subscription during September 11–15, 2023. The nominal value of the bond based on the simple average of closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. September 06, September 07, and September 08, 2023 works out to ₹5,923/- (Rupees Five thousand nine hundred and twenty three only) per gram of gold.”

Discount for on-line candidates

“Government of India, in consultation with the Reserve Bank, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and making the payment against the application through digital mode. For such investors, the issue price of Gold Bond will be ₹5,873/- (Rupees Five thousand eight hundred and seventy three only) per gram of gold,” RBI mentioned.

Sovereign gold bond scheme 2023-24 collection 2 might be bought by banks, Stock Holding Corporation of India Ltd (SHCIL), designated submit workplaces, and recognised inventory exchanges — the NSE and the BSE.

Important sovereign gold bond September 2023 particulars

1] Sovereign gold bond worth: The RBI has fastened situation worth at ₹5,923 per 10 gm.

2] Sovereign gold bond low cost: The RBI has introduced ₹50 per 10 gm low cost for on-line candidates to the brand new tranche of sovereign gold bond September 2023.

3] Sovereign gold bond date: The RBI has introduced that second tranche of sovereign gold bond 2023 will open for subscription on eleventh September 2023 and it’ll stay open for bidding until fifteenth September 2023. This means, Sovereign gold bond scheme 2023-24 collection 2 might be accessible from Monday to Friday subsequent week.

4] How to use: Sovereign gold bond scheme 2023-24 collection 2 might be bought by banks, Stock Holding Corporation of India Ltd (SHCIL), designated submit workplaces, and recognised inventory exchanges — the NSE and the BSE.

5] Eligibility: The sovereign gold bond scheme is restricted on the market to resident people, HUFs, Trusts, Universities and Charitable Institutions.

6] Tenor: The tenor of the sovereign gold bond scheme might be for a interval of eight years with an possibility of untimely redemption after fifth yr to be exercised on the date on which curiosity is payable.

7] Investment restrict: Minimum permissible funding restrict in sovereign gold bond scheme is one gram. However, the utmost restrict of subscription shall be 4 Kg for particular person, 4 Kg for HUF and 20 Kg for trusts and comparable entities per fiscal yr (April-March) notified by the Government on occasion.

8] Redemption worth: The redemption worth below sovereign gold bond scheme might be in Indian Rupees based mostly on easy common of closing worth of gold of 999 purity, of earlier three working days revealed by IBJA.

9] Sovereign gold bond rate of interest: The buyers might be compensated at a set fee of two.50 per cent every year payable semi-annually on the nominal worth.

10] Should you apply: Giving ‘subscribe’ tag to Sovereign gold bond scheme 2023-24 collection 2, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors mentioned, “Gold prices have been trading slightly subdued after testing record highs of Rs.61,845 per 10 grams during the second quarter of 2023. However, as we approach the wedding and festival season in India, gold is likely to attract attention all over again.”

Sugandha mentioned that outlook for gold is constructive within the medium to long run. Investors can allocate 10-15% of their portfolios to gold to diversify their danger and shield their wealth in opposition to rising worth pressures and financial uncertainty.

On why one ought to apply for sovereign gold bond September 2023 tranche, Sugandha listed out the next 4 causes:

1] Central banks world wide are accumulating gold in large portions amid rising financial uncertainties and a rising push in direction of de-dollarization. This is seen as a vote of confidence in gold as a protected haven asset.

2] Markets are anticipating that the US central financial institution is close to the tip of its fee hike cycle. This is nice information for gold, as greater rates of interest are inclined to weigh on gold costs.

3] Concerns a couple of weakening world economic system are prone to maintain gold’s attract as a protected haven funding. Gold is seen as a hedge in opposition to inflation and financial instability.

4] Gold costs have already corrected from their peak of Rs.61,845 per 10 gm and have been consolidating across the near-term assist zone of Rs.57,500-58,000 per 10gm. This might be a chance for buyers so as to add gold to their portfolios in a phased method and sovereign gold bonds are top-of-the-line devices to achieve publicity to gold if one has a long-term horizon.

Disclaimer: The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding selections.

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Updated: 09 Sep 2023, 08:26 AM IST

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