Sovereign Gold Bond-Best Gold Investment in India

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Sovereign Gold Bond (SGB)

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will redeem in cash at maturity. The Bond issued by Reserve Bank on behalf of the Government of India.

Investors can buy these bonds through NSE/BSE at issue price. The RBI announces a fresh sale. They are also available to buy and sell on NSE/BSE at current price like any other security.

Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on NSE/BSE at current prices.

Oct 2018 - Per financial year maximum investment limit has increased from 500 gm to 4KG for individuals and HUF.

Sovereign Gold Bonds is the "Best Gold Investment in India" because you will get the price appreciation benefit as well as 2.5% interest on your investment. When you purchase physical gold, you will get only price appreciation not annual interest.

Latest Update 17 Oct 2019

  • Sovereign Gold Bond Scheme 2019-20-Series-VI will be issued from Oct 21, 2019 to Oct 25, 2019. The Bonds will be issued on the Oct 30,2019.Issue price is ₹3785 (₹50 Retail Discount for online users only). Assured return of 2.50% PA payable half yearly on Rs 3835/gm.
  • Sovereign Gold Bond Scheme 2019-20-Series-VII will be issued from Dec 02, 2019 to Dec 06, 2019. The Bonds will be issued on the Dec 10,2019.Issue price is Not Yet Announced. Assured return of 2.50% PA payable half yearly on Rs TBD/gm.
  • Sovereign Gold Bond Scheme 2019-20-Series-VIII will be issued from Jan 13, 2020 to Jan 17, 2020. The Bonds will be issued on the Jan 21,2020.Issue price is Not Yet Announced. Assured return of 2.50% PA payable half yearly on Rs TBD/gm.
  • Sovereign Gold Bond Scheme 2019-20-Series-IX will be issued from Feb 03, 2020 to Feb 07, 2020. The Bonds will be issued on the Feb 11,2020.Issue price is Not Yet Announced. Assured return of 2.50% PA payable half yearly on Rs TBD/gm.
  • Sovereign Gold Bond Scheme 2019-20-Series-X will be issued from Mar 02, 2020 to Mar 06, 2020. The Bonds will be issued on the Mar 11,2020.Issue price is Not Yet Announced. Assured return of 2.50% PA payable half yearly on Rs TBD/gm.

Sovereign Gold Bonds Scheme History

NSE Code Gold Bond Name Issue Date Base Price Retail Discount Interest Redemption Performance Report
SGBMAR28 Sovereign Gold Bonds 2019-20-Series-X 11-Mar-2020 ₹TBD ₹50 2.50% PA Mar-28 Report
SGBFEB28 Sovereign Gold Bonds 2019-20-Series-IX 11-Feb-2020 ₹TBD ₹50 2.50% PA Feb-28 Report
SGBJAN28 Sovereign Gold Bonds 2019-20-Series-VIII 21-Jan-2020 ₹TBD ₹50 2.50% PA Jan-28 Report
SGBDEC27 Sovereign Gold Bonds 2019-20-Series-VII 10-Dec-2019 ₹TBD ₹50 2.50% PA Dec-27 Report
SGBOCT27 Sovereign Gold Bonds 2019-20-Series-VI 30-Oct-2019 ₹3835 ₹50 2.50% PA Oct-27 Report
SGBOCT27 Sovereign Gold Bonds 2019-20-Series-V 15-Oct-2019 ₹3788 ₹50 2.50% PA Oct-27 Report
SGBSEP27 Sovereign Gold Bonds 2019-20-Series-IV 17-Sep-2019 ₹3890 ₹50 2.50% PA Sep-27 Report
SGBAUG27 Sovereign Gold Bonds 2019-20-Series-III 14-Aug-2019 ₹3499 ₹50 2.50% PA Aug-27 Report
SGBJUL27 Sovereign Gold Bonds 2019-20-Series-II 16-Jul-2019 ₹3443 ₹50 2.50% PA Jul-27 Report
SGBJUN27 Sovereign Gold Bonds 2019-20-Series-I 11-Jun-2019 ₹3196 ₹50 2.50% PA Jun-27 Report
SGBFEB27 Sovereign Gold Bonds 2018-19-Series-VI 12-Feb-2019 ₹3326 ₹50 2.50% PA Feb-27 Report
SGBJAN27 Sovereign Gold Bonds 2018-19-Series-V 22-Jan-2019 ₹3214 ₹50 2.50% PA Jan-27 Report
SGBDEC26 Sovereign Gold Bonds 2018-19-Series-IV 01-Jan-2019 ₹3119 ₹50 2.50% PA Jan-27 Report
SGBNOV26 Sovereign Gold Bonds 2018-19-Series-III 13-Nov-2018 ₹3183 ₹50 2.50% PA Nov-26 Report
SGBOCT26 Sovereign Gold Bonds 2018-19-Series-II 23-Oct-2018 ₹3146 ₹50 2.50% PA Oct-26 Report
SGBMAY26 Sovereign Gold Bonds 2018-19-Series-I 04-May-2018 ₹3114 ₹50 2.50% PA May-26 Report
SGBJAN26 Sovereign Gold Bonds 2017-18-Series-XIV 01-Jan-2018 ₹2881 ₹50 2.50% PA Jan-26 Report
SGBDEC2513 Sovereign Gold Bonds 2017-18-Series-XIII 26-Dec-2017 ₹2866 ₹50 2.50% PA Dec-25 Report
SGBDEC2512 Sovereign Gold Bonds 2017-18-Series-XII 18-Dec-2017 ₹2890 ₹50 2.50% PA Dec-25 Report
SGBDEC25XI Sovereign Gold Bonds 2017-18-Series-XI 11-Dec-2017 ₹2952 ₹50 2.50% PA Dec-25 Report
SGBDEC25 Sovereign Gold Bonds 2017-18-Series-X 04-Dec-2017 ₹2961 ₹50 2.50% PA Dec-25 Report
SGBNOV25IX Sovereign Gold Bonds 2017-18-Series-IX 27-Nov-2017 ₹2964 ₹50 2.50% PA Nov-25 Report
SGBNOV258 Sovereign Gold Bonds 2017-18-Series-VIII 20-Nov-2017 ₹2961 ₹50 2.50% PA Nov-25 Report
SGBNOV25 Sovereign Gold Bonds 2017-18-Series-VII 13-Nov-2017 ₹2934 ₹50 2.50% PA Nov-25 Report
SGBNOV25VI Sovereign Gold Bonds 2017-18-Series-VI 06-Nov-2017 ₹2945 ₹50 2.50% PA Nov-25 Report
SGBOCT25V Sovereign Gold Bonds 2017-18-Series-V 30-Oct-2017 ₹2971 ₹50 2.50% PA Oct-25 Report
SGBOCT25IV Sovereign Gold Bonds 2017-18-Series-IV 23-Oct-2017 ₹2987 ₹50 2.50% PA Oct-25 Report
SGBOCT25 Sovereign Gold Bonds 2017-18-Series-III 16-Oct-2017 ₹2956 ₹50 2.50% PA Oct-25 Report
SGBJUL25 Sovereign Gold Bonds 2017-18-Series-II 28-Jul-2017 ₹2830 ₹50 2.50% PA Jul-25 Report
SGBMAY25 Sovereign Gold Bonds 2017-18-Series-I 12-May-2017 ₹2951 ₹50 2.50% PA May-25 Report
SGBMAR25 Sovereign Gold Bonds-2016-17-Series-IV 17-Mar-2017 ₹2943 ₹50 2.50% PA Mar-25 Report
SGBNOV24 Sovereign Gold Bonds-2016-17-Series-III 17-Nov-2016 ₹3007 ₹50 2.50% PA Nov-24 Report
SGBSEP24 Sovereign Gold Bonds-2016-17-Series-II 23-Sep-2016 ₹3150 ₹0 2.75% PA Sep-24 Report
SGBAUG24 Sovereign Gold Bonds-2016-17-Series-I 05-Aug-2016 ₹3119 ₹0 2.75% PA Aug-24 Report
SGBMAR24 Sovereign Gold Bonds-2016-Series-II 29-Mar-2016 ₹2916 ₹0 2.75% PA Mar-24 Report
SGBFEB24 Sovereign Gold Bonds-2016-Series-I 08-Feb-2016 ₹2600 ₹0 2.75% PA Feb-24 Report
SGBNOV23 Sovereign Gold Bonds-2015-Series-I 26-Nov-2015 ₹2684 ₹0 2.75% PA Nov-23 Report

Sovereign Gold Bond - RBI Press Releases

Last updated on 21st Oct 2019

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FAQs

  1. Why Sovereign Gold Bonds are more popular and getting market heat?

    Investors are going to get 2.50% per annum (Fixed rate) interest on the initial investment. Interest will credited semi-annually to the bank account of the investor. The last interest will be payable on maturity along with the principal. In such case if you are planning to buy physical gold for investment, this bond is giving same advantage + extra interest of 2.50% PA. As well as you can use this bound for collateral for loans.

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  2. What is the key advantage of investing in Sovereign Gold Bonds vs buying physical gold?

    • No hassle to hold physical gold.
    • Risks and costs of storage are eliminated.
    • Assurance of market rate of maturity.
    • Periodical interest of 2.50% PA.
    • Minimum investment: 1 gram. Maximum investment: 4KG grams for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year.
    • Saving on making charges in case of Jewellery.
    • Purity guarantees.
    • The Bond is by RBI, held on the books of the RBI or in demat form, eliminating risk of loss of scrip etc.
    • The Bond is available in demat and paper form.
    • Can be bought from BSE, NSE, Post office or bank.
    • The tenor of the bond is for a minimum of 8 years with the option to exit in 5th, 6th and 7th years.
    • The bonds will carry a sovereign guarantee both on the capital invested and the interest.
    • No STT (Securities Transaction Tax).
    • Capital Gains Tax (as per Government of India guidelines).
    • RBI will announce the price before the issue date which will be fixed at the previous week's simple average of the closing price of gold of 999 purity (24 carat) published by IBJA.
    • Traded on Exchange, older version of bonds is available in exchange for trade.

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  3. What is the advantage of Sovereign Gold Bond over Physical gold and Gold ETF?

    Comparison of Physical gold, Gold ETF and Sovereign Gold Bond

    Points Physical Gold Gold ETF Sovereign Gold Bond
    Returns Lower than actual return on gold Lower than actual return on gold Higher than actual return on gold
    Safety Risk of handling physical gold High High
    Purity of Gold Purity of Gold always remains a question High as it is in Electronic Form High as it is in Electronic Form
    Capital Gain Long term capital gain applicable after 3 years Long term capital gain applicable after 3 years Long term capital gain applicable after 3 years. ( No Capital gain tax if held till maturity )
    Collateral against Loan Yes No Yes
    Tradability / Exit Route Conditional Tradable on Exchange Tradable on Exchange. Redemption- 5th year onwards with GoI
    Storage Cost High Very Low Very Low

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  4. How can investor buy Sovereign Gold Bonds?

    Investors can buy/apply for the bond through SEBI authorized trading members and financial advisors of NSE, BSE. The RBI also appointed scheduled commercial banks and designated post offices. NBFCs, National Saving Certificate (NSC) agents and others can act as agents. They would authorized to collect the application form and submit in banks and post offices. Application forms will be provided by trading members, authorized agents and can also be downloaded from RBI's website.

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  5. Who is issuing the bonds?

    The Bonds are issued by the Reserve Bank of India on behalf of the Government of India. The bonds are distributed through banks and designated post offices, NSE and BSE. This should make subscribing to the bonds an easy affair. During redemption, "the price of gold may be taken from the reference rate, as decided, and the Rupee equivalent amount may be converted at the RBI Reference rate on issue and redemption".

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  6. Are there any risks in investing in Sovereign Gold Bonds?

    Yes, there may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for. Investor are going to get 2.75% interest PA on investment, which is apart from golf price movement.

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  7. Who is eligible to invest in the SGBs?

    Persons resident in India as defined under the Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities, charitable institutions, etc.

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  8. Can I buy SGB for Minor?

    Yes. Bond can be bought on the name of the minor, the application on behalf of the minor has to be made by his / her guardian.

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  9. What is the minimum and maximum limit for investment?

    Minimum 1 gram and maximum 4KG per person per fiscal year (April - March). From Oct 2017, you can subscribe 4 KG for individual, 4 Kg for HUF per fiscal year. This 4 KG includes both initial issuance of Government and those purchased from the Secondary Market.

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  10. If I apply in SGB, am I assured of allotment?

    Yes, If the customer meets the eligibility criteria, produces a valid identification document and remits the application money on time, he/she will receive the allotment.

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  11. Can I apply online for SGB?

    Yes, A customer can apply online through the website of the listed scheduled commercial banks, NSE, BSE or SEBI registered brokers.

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  12. What are the procedures involved during SGB redemption?

    The investor will advise one month before maturity on the ensuing maturity of the bond. On the date of maturity, the maturity proceeds will credit to the bank account as per the details on record. In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/PO promptly.

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  13. Can I use SGB securities as collateral for loans?

    Yes, these securities are eligible to use as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to value ratio will be the same as applicable to ordinary gold loan mandated by the RBI from time to time.

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  14. What are the payment options for investing in the Sovereign Gold Bonds?

    Payment can made through cash/cheques/demand draft/electronic fund transfer.

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  15. Can I get the bonds in the demat form?

    Yes, the bonds can hold in the demat account.

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  16. Can I trade these bonds?

    The bonds are tradable on stock exchanges from the date to be notified by RBI. The bonds can also be sold and transferred as per provisions of the Government Securities Act.

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  17. Can I get part repayment of these bonds at the time of exercising a put option?

    Yes, partial holdings can be redeemed in multiples of one gram.

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User Comments

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1. tapan baroi  Oct 7, 2017 2:35:44 PM IST Reply
i have withdrew my gold bond issue dated05 aug 2016
rs 6238 direct help me






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