The first round of people’s subscriptions for the Sovereign Gold Bond Scheme 2023-24 has begun on Monday, June 19. This scheme allows individuals to invest in gold by purchasing government-issued bonds. The price for each gram of gold has been set at Rs.5,926, and this is the amount people will pay for each gram of gold they invest in. The government’s Finance Ministry mentioned that people can sign up for this scheme until June 27, giving them a limited time window to participate and secure their investment in gold.
The Reserve Bank of India (RBI) issues these special bonds on behalf of the government. People can buy these bonds from various places like banks, the Stock Holding Corporation of India (SHCIL), certain post offices, and stock exchanges like NSE and BSE. If someone chooses to buy these bonds online and pays using digital methods, they will receive a discount of Rs. 50 for each gram of gold. So instead of paying Rs. 5,926 per gram, they will only have to pay Rs. 5,876 per gram, saving them some money.
Details of Sovereign Gold Bond Scheme Subscription!
The Sovereign Gold Bond Scheme was introduced in November 2015 to encourage people to invest in gold bonds instead of buying physical gold. The price per gram of gold in these bonds is determined based on the average price set by the India Bullion and Jewelers Association Limited for gold with 999 purity during the three working days before the subscription period. When investing, you need to purchase at least 1 gram of gold in one unit. Individuals and Hindu undivided families can buy a maximum of 4 kg of gold bonds in a financial year, while trusts can purchase up to 20 kg.
The bond period is 8 years, and at the end of this period, you will receive the prevailing market price. However, if you wish to withdraw after five years, you have that option as well. It’s important to note that the same Know Your Customer (KYC) rules applicable for purchasing physical gold also apply to these gold bonds.