Check Important Dates, Discount, Interest

Sovereign Gold Bond: The eleventh tranche of the government’s Sovereign Gold Bond scheme opened for subscription on Monday, February 1, for a period of five days till Friday (February 5). Under the gold bond scheme, the Reserve Bank of India (RBI) issues interest-paying bonds linked to the market price of the yellow metal. After the current series, the gold bond scheme will be available two more times till March 2021. For the tenth installment of the gold bond scheme, an issue price of Rs 4,912 per unit, equivalent to the value of one gram of gold, is applicable.

Here are some key details about the government-run Sovereign Gold Bond scheme: 

Important Dates

The eleventh tranche of the gold bond scheme will open for subscription on Monday, February 1, and will be available for investing till Friday, February 5

Discount

A discount of Rs 50 per unit is applicable for those investing in the gold bonds online, and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be Rs 5,054 per gram of gold. (Also Read:Here Is How Sovereign Gold Bond Price Is Calculated)

Issue Price

Each gold bond (equivalent to one gram of gold) is priced at Rs 4,912 under the tenth installment. The rate is arrived at on the basis of spot prices provided by the Mumbai-based India Bullion and Jewellers Association (IBJA).  

 Mr. Nish Bhatt, Founder & CEO, Millwood Kane International – an investment consulting firm on the Eleventh Tranche of the Sovereign Gold Bond Scheme

“The 11th tranche of SGB is priced at Rs 4912/gm with a discount of Rs 50/gm for online investors. Investment in SGB is most seamless and cost-efficient for investors looking to take exposure in Gold. After a stellar performance in 2020, gold prices have been trading in the range of Rs 48,000-Rs 52,000 range in the past 3 months. Gold is headed for a decline in value for the month of January. Gold prices have been under pressure due to the rise in US treasury yield and subdued buying activity by Gold ETF investors. Delay and lack of clarity on the next installment of the stimulus package have pushed yields higher, reducing the investor appetite for the yellow metal. Moving forward, the amount of stimulus package from the US government, effective implementation of vaccination process and pick up in economy across the globe will guide gold prices.”