Table of Contents
- Sovereign Gold Bond 2020-21 will be issued by Reserve Bank India on behalf of the Government of India.
THE SCHEME
- GOI introduced the Sovereign Gold Bond (SGB) Scheme in November 2015 to offer investors an alternative to own gold.
- SGBs are government securities and are considered safe.
- Over the years, the market has witnessed a considerable decline in the demand for physical gold.
- India’s gold imports have plunged more than 73% year-on-year in March
SOVEREIGN GOLD BONDS SCHEME 2020 -21
- Any Indian resident – individuals, Trusts, HUFs, charitable institutions, and universities.
- You may also invest on behalf of a minor.
- The minimum initial investment is 1 gram of gold, and the upper limit is 4 kgs of gold per investor.
- Maturity period of the bond is 8 years. However, you can choose to exit the bond from the fifth year.
- Current interest rate for SGB is 50% annually.
- Returns are usually linked to the current market price of gold.
- The bonds may be purchased through banks, Stock Holding Corporation of India Limited (SHCIL), and selected post offices.
INTERESTING FACT
FACTORS THAT DETERMINE GOLD PRICES IN INDIA
- Global change in Gold Prices.
- Gold Reserve with RBI.
- Overall domestic demand.
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