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The ninth series of the Sovereign Gold Bond Scheme 2020-21 will open for subscription from 28 December 2020. Investments can be made in it by 1 January 2021. This time the RBI has fixed the issue price at Rs 5,000 per gram. That is, the price of 10 grams was Rs 50,000. Which is less than the market rate.
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If you invest in it through digital payment, then you will get a rebate of Rs 50 per gram. That is, you can get a discount of 500 rupees on the purchase of 10 grams. Last time, the issue price of 8th series of Gold Bond Series was fixed at Rs 5,177 per gram. It was open for application on 9 November 2020 and closed on 13 November.
Investors who subscribed to the first issue of Sovereign Gold Bonds in November 2015 have received returns of around 93% in the last five years. These bonds mature in eight years, but the investor has the option to exit after five years.
Under this scheme, one can buy gold bonds up to a maximum of 4 kg in a financial year. If you want to invest in Sovereign Gold Bond then you must have PAN. You can apply it to all commercial banks (except RRB, Small Finance Bank, Payment Bank), Post Office, Stock Holding Corporation of India Limited (SHCIL), National Stock Exchange (NSE), Bombay Stock Exchange (BSE) or directly through agents
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In Sovereign Gold Bonds, the investor does not get gold in physical form. It is safer than physical gold. Gold Bond Certificate is given to those who invest in it. After the completion of maturity, when the investor goes to redeem it, he gets money equal to the gold value of the time. Its rate is fixed on the average closing price of the last three days. The interest is paid to the investor at the pre-determined rate during the bond period.
As far as purity is concerned, its accuracy cannot be doubted due to its electronic form. After three years, it will attract long-term capital gains tax (capital gains tax will not be levied till maturity), while you can use it for loans. If you talk about redemptions, you can redeem it anytime after five years.
You can buy up to 4 kg of gold in a financial year. The government also gives you 2.5 percent interest annually in gold bonds. That is, apart from the rising prices of gold, you also get interest separately.
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Sovereign Gold Bond is a long-term investment. Its maturity period is 8 years old. But you can redeem it from the 5th year. The price you get when you redeem it will depend on the price of gold in the market at that time.
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