Sovereign Gold Bond 2023-2024 Series I opens today: Should you invest?
Gold bonds can be a good option for those looking to invest in the precious metal through a financial vehicle for the long term. For investors keen to hold on till maturity, the gains, if any, are tax-free. The Reserve Bank of India has announced the launch of Sovereign Gold Bond Scheme 2023-24 Series I. It will open on June 19 and close on June 23. What’s on offer? SGBs typically track the price of one gram of gold. They will be issued to investors at Rs 5,926 per bond. There is a Rs 50 discount per gram for investors applying and paying using digital modes – the issue price will be Rs 5,876 in such cases. Investors will get interest on SGBs at 2.5 percent, payable half yearly. SGBs have a tenure of eight years and they are listed on the stock exchanges. Investors can transact in SGBs on the exchanges. They can also redeem them with the RBI after five years. Since SGBs pay the prevailing value of one gram of gold at the time of maturity, which is in addition to the interest paid on the price of the SGBs at the time of issuance, it can be an effective way to invest in gold. Source - Money Control