6 golden reasons to invest in Sovereign Gold Bonds amid pandemic

By: |
May 25, 2021 2:11 PM

Sovereign Gold Bonds 2021-22 (Series II) is now open for subscription till May 28, 2021 at the issue price of Rs 4,842 per gram.

Gold Rate Today, Gold Price Today in IndiaLower US treasury yields and worries over the rise in new virus cases due to the more virulent Delta variant are keeping gold prices steady, said an analyst. Representative image

Sovereign Gold Bonds 2021-22 (Series II) is now open for subscription till May 28, 2021 at the issue price of Rs 4,842 per gram. Online subscription and payment for subscribing to Sovereign Gold Bond (SGB) will fetch you a discount of Rs 50 from the issue price. Sovereign Gold Bonds are being sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and stock exchanges (NSE, BSE).

If you are looking to secure your financial future through Gold amid the current pandemic, Sovereign Gold Bond (SGB) is probably the best choice you can make right now. Here are at least six golden reasons to support this claim:

1. Get assured returns of 2.5 per cent per annum, payable half-yearly

You can get an assured return of 2.5 per cent per annum on your SGB investment. You will get the assured return even as market price of your SGB holding will continue to go up.. With physical gold, you can’t get any assured annual returns.

2. Secure, no storage hassles like physical gold

Unlike physical Gold, SGB is fully secure. You won’t have to worry about the safety of your SGB holding as it does not require physical space. SGB can be purchased from banks online.

ALSO READ | How and when to buy Sovereign Gold Bonds in 2021 amid Covid-19 pandemic

3. Easy to sell, tradable on exchanges

Selling physical gold at the current market price may not be an easy task. However, SGB can be sold easily at the market price. It is tradable on stock exchanges.

4. No capital gain tax on redemption

You won’t have to pay any capital gain tax on the redemption of your SGB holdings. You can’t enjoy this facility with physical gold.

5. Use as collateral for loans

You can also use SGB as collateral for obtaining a loan from a bank.

6. No GST and making charges unlike in physical gold

Physical gold attracts GST and making charges. SGB is free from this.

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