While gold may not be enticing enough for new investors, it is still advisable to have some allocation to the yellow metal in long-term portfolios. Buying Sovereign Gold Bonds or SGBs is the most tax beneficial investment of gold. Now there are two ways to invest in SGBs. One is to buy directly from the Reserve Bank of India (RBI) during primary issuance. The other option is to purchase older SGB issues, which are available in the secondary market. Which one you should consider? Watch to find out.
The bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges -- NSE and BSE.
Sovereign gold bonds have gained traction during the pandemic years as the price of physical gold has surged.
SGBs are eight-year instruments. But the RBI provides a buyback facility at the end of the fifth, sixth and seventh years.
Sovereign Gold Bonds 2020-21 (Series XII) will be open for subscription from March 1 to 5, 2021.
It is worthwhile having gold as part of your portfolio but remember this is a long-term investment
The SGB can be a good way to invest in gold, provided you have the ability to hold on till the maturity
Seeking to contain physical gold demand, the government is likely to issue fifth tranche of sovereign gold bond (SGB) scheme next month.
As per the second half borrowing programme issued by Reserve Bank in consultation with government, Rs 15,000 crore had to be raised through gold bonds.
The government's much-touted sovereign gold bond scheme has failed to cut much ice with the public, if the final amount of about Rs 150 crore is any indication, say bankers, who also blamed the high issue price as the biggest dampener.