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 Bonds are 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.

Sovereign Gold Bond 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 the annual interest.

From year 2018, the maximum investment limit per financial year has increased from 500 gm to 4KG for individuals and HUF.

Latest Update 10th Oct 2020

Sovereign Gold Bonds 2020-21 Series-V is the highest invested gold bond series till date, number of units invested are 63.5 lakhs (gold in gm). SGB 2020-21 Series-VI and Series-V both combined investment is above 1.05 Cr units which is around 21% of SGB invested till date from 2015.

Sovereign Gold Bond Scheme (SGB) 2020-21- Series VIII, IX, X, XI, XII

Gold Bond Name Subscription Date Issue Date
SGB 2020-21 Series VIII 9th Nov to 13th Nov 2020 18th Nov 2020
SGB 2020-21 Series IX 28th Dec 2020 to 1st Jan 2021 05th Jan 2021
SGB 2020-21 Series X 11th Jan to 15th Jan 2021 19th Jan 2021
SGB 2020-21 Series XI 1st Feb to 5th Feb 2021 9th Feb 2021
SGB 2020-21 Series XII 1st Mar to 5th Mar 2021 9th Mar 2021
SGB 2020-21 Series VI 31st Aug to 4th Sep 2020 8th Sep 2020

Sovereign Gold Bonds Scheme History

NSE Code Gold Bond Name Issue Date Base Price Retail Discount Interest Redemption Performance Report
SGBOCT28Sovereign Gold Bonds 2020-21-Series-VII20th Oct 2020₹5051₹502.50% PAOCT-2028 .
SGBSEP28VISovereign Gold Bonds 2020-21-Series-VI8th Sep 2020₹5117₹502.50% PASEP-2028 Report
SGBAUG28VSovereign Gold Bonds 2020-21-Series-V11th Aug 2020₹5334₹502.50% PAAug-2028 Report
SGBJUL28IVSovereign Gold Bonds 2020-21-Series-IV14th Jul 2020₹4852₹502.50% PAJul-2028 Report
SGBJUN28Sovereign Gold Bonds 2020-21-Series-III16th Jun 2020₹4677₹502.50% PAJun-2028 Report
SGBMAY28Sovereign Gold Bonds 2020-21-Series-II22nd May 2020₹4590₹502.50% PAMay-2028 Report
SGBAPR28ISovereign Gold Bonds 2020-21-Series-I28th Apr 2020₹4639₹502.50% PAApr-2028 Report
SGBMAR28XSovereign Gold Bonds 2019-20-Series-X11th Mar 2020₹4260₹502.50% PAMar-2028 Report
SGBFEB28IXSovereign Gold Bonds 2019-20-Series-IX11th Feb 2020₹4070₹502.50% PAFeb-2028 Report
SGBJ28VIIISovereign Gold Bonds 2019-20-Series-VIII21st Jan 2020₹4016₹502.50% PAJan-2028 Report
SGBDC27VIISovereign Gold Bonds 2019-20-Series-VII10th Dec 2019₹3795₹502.50% PADec-2027 Report
SGBOCT27VISovereign Gold Bonds 2019-20-Series-VI30th Oct 2019₹3835₹502.50% PAOct-2027 Report
SGBOCT27Sovereign Gold Bonds 2019-20-Series-V15th Oct 2019₹3788₹502.50% PAOct-2027 Report
SGBSEP27Sovereign Gold Bonds 2019-20-Series-IV17th Sep 2019₹3890₹502.50% PASep-2027 Report
SGBAUG27Sovereign Gold Bonds 2019-20-Series-III14th Aug 2019₹3499₹502.50% PAAug-2027 Report
SGBJUL27Sovereign Gold Bonds 2019-20-Series-II16th Jul 2019₹3443₹502.50% PAJul-2027 Report
SGBJUN27Sovereign Gold Bonds 2019-20-Series-I11th Jun 2019₹3196₹502.50% PAJun-2027 Report
SGBFEB27Sovereign Gold Bonds 2018-19-Series-VI12th Feb 2019₹3326₹502.50% PAFeb-2027 Report
SGBJAN27Sovereign Gold Bonds 2018-19-Series-V22nd Jan 2019₹3214₹502.50% PAJan-2027 Report
SGBDEC26Sovereign Gold Bonds 2018-19-Series-IV1st Jan 2019₹3119₹502.50% PAJan-2027 Report
SGBNOV26Sovereign Gold Bonds 2018-19-Series-III13th Nov 2018₹3183₹502.50% PANov-2026 Report
SGBOCT26Sovereign Gold Bonds 2018-19-Series-II23rd Oct 2018₹3146₹502.50% PAOct-2026 Report
SGBMAY26Sovereign Gold Bonds 2018-19-Series-I4th May 2018₹3114₹502.50% PAMay-2026 Report
SGBJAN26Sovereign Gold Bonds 2017-18-Series-XIV1st Jan 2017₹2881₹502.50% PAJan-2026 Report
SGBDEC2513Sovereign Gold Bonds 2017-18-Series-XIII26th Dec 2017₹2866₹502.50% PADec-2025 Report
SGBDEC2512Sovereign Gold Bonds 2017-18-Series-XII18th Dec 2017₹2890₹502.50% PADec-2025 Report
SGBDEC25XISovereign Gold Bonds 2017-18-Series-XI11th Dec 2017₹2952₹502.50% PADec-2025 Report
SGBDEC25Sovereign Gold Bonds 2017-18-Series-X4th Dec 2017₹2961₹502.50% PADec-2025 Report
SGBNOV25IXSovereign Gold Bonds 2017-18-Series-IX27th Nov 2017₹2964₹502.50% PANov-2025 Report
SGBNOV258Sovereign Gold Bonds 2017-18-Series-VIII20th Nov 2017₹2961₹502.50% PANov-2025 Report
SGBNOV25Sovereign Gold Bonds 2017-18-Series-VII13th Nov 2017₹2934₹502.50% PANov-2025 Report
SGBNOV25VISovereign Gold Bonds 2017-18-Series-VI6th Nov 2017₹2945₹502.50% PANov-2025 Report
SGBOCT25VSovereign Gold Bonds 2017-18-Series-V30th Oct 2017₹2971₹502.50% PAOct-2025 Report
SGBOCT25IVSovereign Gold Bonds 2017-18-Series-IV23rd Oct 2017₹2987₹502.50% PAOct-2025 Report
SGBOCT25Sovereign Gold Bonds 2017-18-Series-III16th Oct 2017₹2956₹502.50% PAOct-2025 Report
SGBJUL25Sovereign Gold Bonds 2017-18-Series-II28th Jul 2017₹2830₹502.50% PAJul-2025 Report
SGBMAY25Sovereign Gold Bonds 2017-18-Series-I12th May 2017₹2951₹502.50% PAMay-2025 Report
SGBMAR25Sovereign Gold Bonds-2016-17-Series-IV17th Mar 2017₹2943₹502.50% PAMar-2025 Report
SGBNOV24Sovereign Gold Bonds-2016-17-Series-III17th Nov 2016₹3007₹502.50% PANov-2024 Report
SGBSEP24Sovereign Gold Bonds-2016-17-Series-II23rd Sep 2016₹3150₹02.75% PASep-2024 Report
SGBAUG24Sovereign Gold Bonds-2016-17-Series-I5th Aug 2016₹3119₹02.75% PAAug-2024 Report
SGBMAR24Sovereign Gold Bonds-2016-Series-II29th Mar 2016₹2916₹02.75% PAMar-2024 Report
SGBFEB24Sovereign Gold Bonds-2016-Series-I8th Feb 2016₹2600₹02.75% PAFeb-2024 Report
SGBNOV23Sovereign Gold Bonds-2015-Series-I26th Nov 2015₹2684₹02.75% PANov-2023 Report

Sovereign Gold Bond - RBI Press Releases

Last updated on 29th Oct 2020

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FAQs

  1. 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.

     

     

  2. 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.

     

     

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

    Comparison of buying Physical gold, Gold ETF and Sovereign Gold Bond for investment

    In this section we have included complete comparison guide in table format for gold investment. With this we can conclude buying SGB is the best investment options compare to gold ETF and physical gold as you get all the advantages from both the options + additional 2.5% interest income on your investment. You can use SGB for Collateral against Loan also.

    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
    Extra Returns No No Interest of 2.5% on the initial investment
    Safety Risk of handling physical gold High High
    Maximum Quantity No Limit No Limit 4 kg for individual, 4 kg for HUF, and 20 kg for trusts and similar entities per fiscal (April-March).
    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

     

     

  4. 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.

     

     

  5. 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".

     

     

  6. 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 that he has paid for. Investor are going to get 2.50% interest PA on investment, which is apart from gold price movement.

     

     

  7. 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.

     

     

  8. 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.

     

     

  9. 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.

     

     

  10. 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.

     

     

  11. 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.

     

     

  12. 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.

     

     

  13. 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.

     

     

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

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

     

     

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

    Yes, the bonds can hold in the demat account.

     

     

  16. 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.

     

     

  17. 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.

     

     

  18. 18. Can I hold SGB in my holdings portfolio even after maturity date provided by RBI?

    No, As Sovereign Gold Bonds (SGB) is Gov Securities and has a fixed maturity date. So on the date of maturity, it will auto redeem and funds will be transferred in your bank account. You can invest in similar bonds to continue your investment once you get funds in your bank account.

     

     

  19. 19. Can I buy a sovereign gold bond online?

    Yes, buying sovereign gold bonds online is the best and easy option. As per RBI guidelines, banks/SHCIL offices/designated Post Offices/agents are the issuing agencies for sovereign gold bonds.

    1. Via Bank/Post Office

      Most of the banks allow you to buy/invest in sovereign gold bonds online with their net banking platform. However, the banks who are providing 3-in-1 accounts (savings account, Trading account, and Demat account) offer direct links to buy SGB from their trading application.

      As you have a Demat account linked with your 3 in 1 account, you will get the Demat holding of your SGB once issued.

      In case you don’t have a 3-in-1 account with a bank, you can still purchase/invest in sovereign gold bonds by submitting your application online via net banking. If you don’t have net banking access, you can visit a nearby bank or post office and fill the application offline.

      When you submit an application offline, you will not get an online discount ofRs 50 per gram.

      For an offline application, you can apply up to Rs 20,000 by cash. For above Rs 20,000, you need to transact via cheques/demand draft/electronic fund transfer.

    2. Via Stock Broker

      If you have a trading and Demat account with any broker then you can buy/invest in sovereign gold bonds online. You will get Rs 50 per gram discount as you are buying SGB online as well as you will get an issued bond in your demat account.  In case you want to liquidate your holding any time, you can sell the same in the stock market.

     

     

  20. 20. Can I buy sovereign gold bond with Zerodha?

    Yes, Zerodha allows you to invest in Sovereign Gold Bonds online. Zerodha has created a special page for the same. Link will be active only when there are active Sovereign Gold Bonds Schemas. Orders are accepted till 3:30 PM on the last subscription date.

    Sovereign Gold Bonds are listed on the exchange 10-15 days after the issue date and can be traded on Zerodha Kite. For now, SGBs are traded via CNC orders only.

     

     

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User Comments

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1. tapan baroi  10/7/2017 3:35:44 PM Reply
i have withdrew my gold bond issue dated05 aug 2016
rs 6238 direct help me
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2.1. Kuldeep singh  8/24/2020 10:06:29 AM
SGB 20-21 Series 5 is the highest invested SGB series. What is the reason lots of investment moving towards gold, when Gold price is already higher.
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2.2. Omprakash Bhandekar  8/24/2020 10:11:40 AM
This is shocking and surprising news for me, due to COVID, we are facing some financial issues, but on another side, gold investment is on the higher side, SGB 20-21 series 4 and series 5 has combined investment of 21% in the SGB history.






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