Introduced in November 2015, the Sovereign Gold Bond aims to decrease the demand for physical gold and redirect a portion of domestic savings, traditionally allocated for gold purchases, into financial savings. However, before making an investment in the bond, it is crucial to familiarise yourself with the key details:

How to calculate price of sovereign gold bonds?

The bond’s price is determined in Indian rupees based on the simple average closing price of gold with 999 purity, as published by the India Bullion and Jewellers’ Association Ltd during the last three working days of the week preceding the subscription period. Consequently, on Friday, RBI announced that the issue price for the upcoming tranche of Sovereign Gold Bonds had been set at ₹5,923 per gram.

What are investment limits for the gold bond?

These bonds are denominated in multiples of grams of gold, with the minimum permissible investment being 1 gram of gold. For individuals, the maximum subscription limit is 4 kg, while trusts and similar entities can subscribe for up to 20 kg each fiscal year.

What is tenor of the SGB Scheme 2023-24?

The SGBs come with an eight-year tenure, offering an exit option after the fifth year, which can be exercised on the next interest payment dates. These bonds provide an annual interest rate of 2.5 per cent, paid semi-annually in June and December. Upon maturity, the bonds are redeemed at the prevailing market price of gold.

Where can you purchase sovereign gold bonds?

These bonds will be available for purchase through banks, the Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and recognized stock exchanges, including the NSE and the BSE.

Enjoy a ₹50 discount with digital transactions

In consultation with the RBI, the government has decided to offer a discount of ₹50 per gram less than the nominal value to investors who apply online and make payments through digital modes. For such investors, the issue price of the gold bond will be ₹5,873 per gram.