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Government Sovereign Gold Bond Scheme from 8 June 2020

The Reserve Bank Of India issued Government Sovereign Gold Bond Scheme (SGB) will be open for subscription from 8th June 2020 till 12th June. This comes as good news for the gold investors who are waiting to invest in the Indian government bond schemes. The issue price for the new gold scheme is Rs 4677 per gram. The gold price has reached new highs in April 2020 and is still holding strong is now considered a good investment opportunity.

sovereign-gold-bond-scheme-2020-21

This government gold bond scheme is open for 5 days starting from June 8, 2020, and end on June 12, 2020. This is the third instalment gold scheme run by Government and issued by RBI. The funds received from this scheme will be spent as per the Indian govt guidelines. These funds are a stimulus for the economy which is in now in the red zone because of the Covid-19 crisis. As the projected growth rate is down and the revenue has fallen, the funds will help in reviving the economic growth of India.

Any Indian individuals can buy gold in the SGB scheme 2020-21 in multiples of 1 gram for Rs 4677 and for 10 grams price is Rs 46770.

Government Sovereign Gold Bond Scheme Series III important dates:

This is the third tranche of the govenrment gold scheme.

  • Start Date: 8 June 2020
  • End Date: 12 June 2020
  • Gold price: Rs 4677 / 1 gram
  • Date of issue: June 16, 2020
  • Interest Rate: Earn 2.5% interest annually
  • Interest paid: once in 6 months, i.e. 2 times in a year
  • Maturity: 8 years
  • Exit option: After 5 years
  • Minimum investment: 1gram gold
  • Maximum investment: Individuals can buy 4kgs, Hindu Undivided Family (HUF) for 4kgs, trusts and govt recognised institutes can buy 20kgs in the gold scheme

Benefits of Sovereign Gold Bond Scheme

  1. No risk of storing the gold.
  2. The gains from this scheme are tax free, after the full maturity period.
  3. These gold bonds can be traded in the stock market after 15 days from the issue date or as notified by the government.

Returns on the Sovereign Gold Bond Scheme

As per the closing price for 999 purity gold from the previous 3 days from the repayment date is calculated. India Bullion and Jewelers Association Limited gold rates are considered for these calculations.

How to buy Sovereign Gold Bond (SGB) in 2020 ?

You can buy Gold scheme bond from private banks, national banks in India (excluding Payment Banks and Small Finance Banks), designated Post Offices, Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges like National Stock Exchange (NSE) of India and Bombay Stock Exchange (BSE).