Amid surging gold prices, the Reserve Bank of India (RBI) has announced the opening of Sovereign Gold Bond (SGB) Scheme 2022-23 Series III from December 19, 2022. The issue period will end on December 27, 2022.
While the gold prices surge over Rs 55,500 per 10 gram or Rs 5,550 per gram of gold on the opening day of the issuance of SGB Scheme 2022-23 Series III, the issue price of the Bond has been declared by the RBI at Rs 5,409 per gram of gold, which is also the issue price per Bond.
Also Read: SGB 2017-18 Series V premature redemption: At 11.6% CAGR, investors get 73.16% absolute return!
Moreover, on applying online and making payment against the application is made through digital mode, an investor will get a discount of Rs 50 per Bond. As a result, the issue price for online investors becomes Rs 5,359 per gram of gold.
Apart from the price advantage over physical gold, some of the other benefits a person investing in the current SGB series will also enjoy are –
No risk of handling
As keeping physical gold – be in gold bars, coins or gold jewellery form – at home is a risky affair, the owners need to spend money to take lockers on rent and/or pay a premium to insure the gold. On the other hand, with the gold kept in the safe custody of the Government of India, SGB investors needn’t worry about the safety of the underlying gold reserve.
Interest on SGB
Not only SGB investors save on the holding cost to keep gold safe, but they also earn 2.5 per cent per annum interest, payable every 6 months till maturity or redemption, on the nominal value of investment.
Tax exemption
While investors selling physical gold need to pay short-term or long-term capital gain tax on the gain amount depending on the period of holding of gold, SGB investors are exempt from paying tax on maturity.
Also Read: Sovereign Gold Bond: Know tax implications on interest, maturity and premature capital gains
SGBs as collateral
If you are in need of loans, you may use SGBs as a collateral for getting loans easily.