Sovereign Gold Bond 2024: Invest in safe, government-backed bonds offering a 2.5% annual interest. Tradeable after 5 years, they’re an easy, tax-friendly way to own gold without physical hassle.
Sovereign Gold Bond 2024
The last subscription of the Sovereign Gold Bonds (SGBs) 2023-24 Series IV is scheduled to open on February 12 (Monday). You have five days, until February 16, 2024, to jump on board. Mark your calendars because the golden moment, the issuance day, is set for February 21, 2024.
The latest round of Sovereign Gold Bonds, part of Series III for 2023-24, opened for subscription from December 18 to December 22, 2023. These unique investment bonds were introduced by the Indian Government in 2015.
You get a decent annual interest rate of 2.50%, paid twice a year directly to your account Upon maturity, these bonds have no tax on redemption. This makes them an attractive option for long-term investors.
What is a Sovereign Gold Bond?
Back in November 2015, the Indian government rolled out the Sovereign Gold Bond (SGB) Scheme, offering a slick alternative to the traditional gold stash.
people are slowly losing their appetite for physical gold, and that’s where SGBs step in Over the years, the market has witnessed a considerable decline in the demand for physical gold. SGBs not only track the export-import value of the asset but also ensure transparency at the same time.
SGBs not only reflect the value of gold but also ensure transparency in the market. Being government securities, SGBs are considered a secure investment option.
The value of SGBs is measured in grams of gold, providing a clear understanding of the investment.
SGBs have gained popularity as a substitute for physical gold, witnessing an increase in the number of investors. Interested investors can buy SGBs by approaching a SEBI-authorized agent or broker.
When it’s time to cash in, the redeemed amount, based on the current market value, is deposited directly into the investor’s registered bank account.
How to buy Sovereign Gold Bond 2024
You can buy some Sovereign Gold Bonds (SGBs) from various spots like commercial banks (excluding small finance banks, payment banks, and regional rural banks), Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, National Stock Exchange of India, and Bombay Stock Exchange.
Sovereign Gold Bond 2024 Series IV
| Subscription Period | Date of Issuance | Investment Limit | Interest | Price Per Gram |
|---|---|---|---|---|
| 12 February 2024 – 16 February 2024 | 21 February 2024 | 1 gm to 4 kg | 2.5% per annum | Rs. 6,263 per gram of gold |
Valuation of Sovereign Gold Bond 2024
Unlock the secret to Sovereign Gold Bonds (SGBs) value their price is tied to the average closing gold rate (999 purity) in the three working days leading up to the subscription window (February 7 to February 9).
if you go digital for your subscription with online payments, you snag a cool Rs 50 discount per gram.
In the latest batch from December 2023, each golden gram was priced at Rs 6,199. For us regular folks, the entry fee is just one gram. But you can buy max 4kg.
The SGB scheme guidelines state: “The redemption price shall be fixed in Indian Rupees based on the previous week’s simple average closing price for gold of 999 purity, published by India Bullion and Jewellers Association (IBJA).
Sovereign Gold Bond Redemption Price
On 27 October 2023, the RBI announced the premature redemption price of Rs.6,079 per unit of SGBs issued on 30 October 2017. Investors can initiate early redemption of their SGBs after the fifth year from the date of SGB issuance, coinciding with the interest payment date. Thus, those who have invested in SGBs issued on 30 October 2017 can redeem them prematurely on 30 October 2023 at Rs.6,079 per unit.
Return on Sovereign Gold Bond 2024
the very first batch of Sovereign Gold Bonds (SGBs) kicked off in 2015, They just hit their jackpot in 2023-end, offering a sweet 12.9% annual return. That’s a gold mine compared to the yellow metal’s average of 11.2% over the last two decades.
The SGBs issued on February 8, 2016, (SGB 2016-I) matured on February 8, 2024. And for another set, the SGB 2016-17 Series I, born on August 5, 2016, the early cash-out option opened its doors on February 5, 2024.
ALSO READ: Gold And Silver Rate Today After Budget 2024
Sovereign Gold Bond Price History
Series | Month | Price per Gram |
| Series 1 | June 2023 | Rs. 5,926 |
| Series 2 | September 2023 | Rs. 5,923 |
| Series 3 | December 2023 | Rs. 6,199 |
Should I Invest in Sovereign Gold Bonds 2024?
- Gold Touch: Add a small slice (5%-10%) of gold to your investments for a steady, low-risk ride.
- Budget-Friendly Move: Choosing Sovereign Gold Bonds (SGBs) is light on your wallet. Buying or selling won’t cost you much, unlike dealing with actual gold.
- No Stress Storage: Skip the worry of keeping physical gold safe. SGBs are like digital savers easy to store and no one can snatch them away. It’s that simple and secure
Sovereign Gold Bond 2024 Benefits
- Safety Priority: Your investment is super secure. No fretting about the pitfalls of physical gold – it’s like a financial fortress.
- Earning on the Side: Unlike regular gold just sitting around, Sovereign Gold Bonds bring in interest – a tidy 2.50% annually, to be exact.
- Tax Advantages: You might snag some tax benefits. Plus, your principal and earned interest are backed by a solid guarantee.
- Trade it Up: After five years, trade your gold bonds on stock exchanges like the National Stock Exchange or Bombay Stock Exchange. Flexibility at its best.
- Golden Collateral: Some banks accept your SGB as collateral. It’s like turning your gold into a loan, with the India Bullion and Jewellers Association Limited deciding the value.
Conclusion:
The last chance to grab Sovereign Gold Bonds (SGBs) Series IV is from Feb 12-16, 2024, with the issuance on Feb 21. These government-backed bonds offer safety, a 2.5% annual interest, and tax benefits. Easily bought through various channels, they’re a modern gold investment.
