Sovereign Gold Bonds

+ 2.5% Interest Extra

What are Sovereign Gold Bonds?

Sovereign Gold Bonds are government-issued securities denominated in grams of gold, serving as alternatives to owning physical gold. Investors purchase these bonds at the issue price in cash and receive redemption in cash upon maturity. These gold bonds are issued on behalf of the Government of India by the RBI.

How much will I earn?

You can expect promising returns on your gold investment if you opt for a long-term approach, such as investing initially and redeeming after 8 years.

What advantages does investing in Sovereign Gold Bonds offer compared to physical gold?

Investing in Sovereign Gold Bonds offers convenience, with demat ownership, assured purity, and transparent pricing, eliminating storage concerns.

Who issues and safeguards investments made in Gold Bonds?

Gold Bonds are issued by the RBI on behalf of the Government of India, guaranteeing the highest safety standards.

What is the liquidity and maturity of Sovereign Gold Bonds?

Sovereign Gold Bonds (SGBs) come with an 8-year tenure and provide investors with the flexibility of an exit option after 5 years. These bonds are tradable on stock exchanges, ensuring liquidity for investors.

What are the minimum and maximum amounts of gold one can buy via Gold Bonds?

As per RBI regulations, individual investors are allowed to purchase 1 gram to 4 kilograms of gold per financial year.

Are there any financial or tax benefits associated with investing in these bonds?

Investors receive a 2.5% per annum interest rate and enjoy zero taxes on Capital Gains upon maturity, with no TDS.

How much money can one expect upon redemption?

At maturity, Sovereign Gold Bonds are redeemed based on the simple average of the previous three business day’s closing price of 999 purity gold, as published by the IBJA.