Sovereign Gold Bond Scheme 2023-24 Series 3 will be available for investment from 18th December to 22nd December 2023. The recent returns of the first Sovereign Gold Bond have attracted many investors. The first Sovereign Gold Bond was issued by RBI in November 2015 and has completed 8 years in November 2023. The issue price was Rs.2,684 per gram (per bond) and the redemption price was set at Rs.6,132, resulting in a return on investment of 10.88% (excluding 2.5% yearly interest), or around 12.5% when factoring in the interest. However, the journey for gold in the last 8 years has been both flat and bumpy. Considering the volatility of gold price movements, the firm belief in gold’s long-term potential remains. This scheme was launched to reduce the demand for physical gold in India, which sees around 300 tons of gold being imported annually. The silent features of this scheme include issuance in the form of Government of India Stock, eligibility for conversion into de-mat form, and fixed interest rates. The minimum investment is 1 gram of gold, with a maximum amount subscribed not exceeding 4 kgs per person per fiscal year for individuals and HUF, and 20 kgs for certain trusts and entities. Bonds can be purchased through banks, Stock Holding Corporation of India Limited (SHCIL), designated Post Offices, and recognized stock exchanges, either directly or through agents. The loan against SGBs can be used as collateral for loans, with Liquidity options including redemption and selling in the secondary market. The Bonds can be transferred through an Instrument of transfer and redeemed at maturity or before, upon approaching the concerned bank/SHCIL offices/Post Office/agent.
