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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