Subscriptions for this 2019–20 Series-IV-Issue tranche were accepted from September 9–September 13, 2019. September 17, 2019 was the date of the bonds' issuance.
The Sovereign Gold Bond (SGB) scheme was introduced to steer Indian investors away from physical gold purchases and reduce the country's gold import bill. However, the government’s failure to hedge against rising gold prices has resulted in mounting liabilities, turning the SGB scheme into an expensive financial misstep.
Despite an allocation of Rs 18,500 crore for SGBs in the FY25 Budget – down from Rs 26,852 crore in the interim Budget – no new tranches of SGBs have been issued in the current fiscal.
Gold exchange-traded funds (ETFs) have become more appealing due to increased geopolitical risks, central bank policy changes, and volatility in the equity market
While experts are optimistic about gold’s outlook, buying Sovereign Gold Bonds at a premium to the reference rate could result in a capital loss if prices do not appreciate enough to offset the premium being quoted currently.
Experts say that while gold prices have gone up significantly, a lumpsum investment might be risky at this point, especially for short durations. But SIPs in gold funds can help you ride out the volatility.
SGB 2016-17 Series IV and SGB 2019-20 Series IV have delivered annualised returns of 14.5 percent and 15.7 percent respectively.
Since there is little or no scope for new SGB launches, these premature redemption windows may draw fewer tender requests. Experts advise investors to stick to their asset allocation mandate.
Sovereign gold bonds are trading above the reference rate, due to their tax advantage and coupon rate. But with news of lesser or no future issuances, listed SGBs are becoming even more popular.
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
Investors who participated in the SGB scheme 2016-17 -series 1, issued in August 2016, are nearing their final redemption, which is set for the first week of August 2024.
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.
Investors are gradually warming to non-physical forms of gold such as ETFs and SGBs
The first tranche of Sovereign Gold Bonds, which are government securities denominated in grams of gold, are all set to see its first redemption on November 30. Investors holding SGB 2015-I till maturity will stand to gain a CAGR of 10.88%.
Dhanteras 2023: Some buy gold on occasions such as Diwali and Dhanteras, while others buy it when prices are attractive or in a bid to collect gold for their children’s wedding. But is investing in gold a good bet?
While both have their advantages, there are several reasons why Gold ETF is the preferred choice over SGBs, primarily the fact that it is linked to a physical gold asset.
Sovereign Gold Bond 2023: Gold can be a good diversifier for most portfolios. SGB can be used to achieve long-term exposure to gold in a tax-efficient manner.
FY24’s first SGB issue raised Rs 4604 crore, indicating how popular this instrument has become among investors seeking diversification
The sale of gold bonds crossed Rs 4,604 crore during the tranche issue in June 2023, shows data from the RBI. This is the highest till date.
Sovereign Gold Bond 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 bond is being issued at a price of Rs 5,197 per gm of gold. There is a discount of Rs 50 per gm, less the discovered price, if you pay using digital means
Catch Sumaira Abidi in conversation with Gaurang Shah of Geojit Financial Services and Rajesh Palviya of Axis Securities as we answer all your stock queries.
Maturity period in case of SGBs is eight years but premature withdrawal is allowed after fifth. Should you opt for it?
Experts advise against selling gold because prices have fallen. They say long-term investors should be guided by their portfolio asset allocations.
The tenor of the bond is eight years with an exit option after the fifth year.