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No new sovereign gold bonds? Check out the most liquid ones on the NSE

The government may go slow or just stop on issuing gold bonds altogether, as Moneycontrol has reported. For those who wish to buy them, some existing listed ones offer a good option

August 13, 2024 / 08:31 IST
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Sovereign Gold Bonds (SGBs) offer an attractive option to hold gold in your portfolio, without the botheration of physical storage. What’s more, the 2.5% or 2.75% coupon rates offered, are an added bonus. Since February of this year, there hasn't been a new issue of SGB. On July 25, Moneycontrol reported that the government might reduce or even discontinue the Sovereign Gold Bonds scheme, citing concerns that it's too costly. In the absence of new issues, investors can consider investing in the SGBs that are available for trading in the secondary markets. Starting 2025, the RBI has launched 67 SGB series and issued as much as 14.7 crore units. They are listed and traded in the cash segment of the BSE and NSE. Retail investors can buy and sell them through demat accounts. In secondary markets, these bonds are available with different residual maturity, and can be matched with your goal horizon.
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Sovereign Gold Bonds (SGBs) offer an attractive option to hold the precious metal in your portfolio without worrying about its physical storage. The 2.5 or 2.75 percent coupon offered is an added bonus.
Since February, no new SGBs have been issued. On July 25, Moneycontrol reported that the government might reduce or even discontinue the SGB scheme as its working out be an expensive proposition.
In the absence of new issues, investors can consider investing in the SGBs that are available for trading in the secondary market. Starting 2015, the RBI has launched 67 SGB tranches, issuing 14.7 crore units. They are listed and traded in the cash segment of the BSE and NSE. Retail investors can buy and sell them through demat accounts.
In secondary markets, these bonds are available with different residual maturity and can be matched with your goal horizon.

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When buying SGBs on the exchanges, two factors matter. One, liquidity. Many SGBs suffer from low liquidity. You will get the desired price in the bonds with higher liquidity. The daily average traded volume of overall SGBs on both NSE and BSE was Rs 13.4 crore.
Second is the traded price of the bond with respect to the reference rate. Note that gold price of 999 purity published in the ibjarates.com is the reference rate for SGBs. Most of the SGB series are traded premium to their reference rate. SGB series that are available close to or lower than the IBJA prices are preferred investment options.
Here is the list of actively traded SGBs on the NSE.

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SGB 2023-24, Series III
Interest payment dates: 28 June & 28 December

Also see: Will customs duty cut hurt investors in sovereign gold bonds maturing in 2024?

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SGB 2023-24, Series IV
Interest payment dates: 21 Feb & 21 Aug

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SGB 2023-24, Series II
Interest payment dates: 20 Mar & 20 Sep

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SGB 2020-21, Series V
Interest payment dates: 11 Feb & 11 Aug

Also see: Explained in charts: The spectacular rise of Gold ETFs and what lies ahead

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SGB 2021-22, Series I
Interest payment dates: 25 May & 25 Nov

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SGB 2023-24, Series I
Interest payment dates: 27 Jun & 27 Dec

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SGB 2020-21, Series IV
Interest payment dates: 14 Jul & 14 Jan

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SGB 2021-22, Series VI
Interest payment dates: 7 Mar & 7 Sep

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SGB 2021-22, Series IV
Interest payment dates: 20 Jul & 20 Jan

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SGB 2020-21, Series XII
Interest payment dates: 9 Mar & 9 Sep

Also see: MC Review | Gold BeES gets budget boost: Should you invest?