How to buy Sovereign Gold Bond? | in 2024

Recently in first week of November,2023 Sovereign Gold Bond is find attention of Indians. First lot of Sovereign Gold Bond(SGB) is Matured with break out number as Return on Investment is 12.9% which is per se more than the Nifty50 Index return in comparison for same period in consideration. Since 2015 SGB was launched at price rupee 2684.00 per gram which will turn into maturity after 8 years is rupee 6132.00 per gram. Total investment lot is matured is around rupee 245 crores. So, after this promising result every Indian wants know, How to buy Sovereign Gold Bond? in 2024

Sovereign Gold Bond is issued every year on interval of three month. Once in June, September, December, February only.

One can invest in this bond via Net banking or apply on line to RBI. Banks like SBI are the best to invest in SGB. You can also invest with having De-mat account number. However if you have you must link while apply for SGB.

SGB are also offering digital investments discount and also offer 2.5% interest above price fluctuation benefit. You are also having benefit of not altering gold and save 15% -25% loss which will be occur if you alter old physical gold to new ornaments.

You can also have 100% capital gain tax exemption benefits on maturity.

You must read our article/blog on this topic to get more insight to make your decision more precise : Tax on Gold Selling- Buying- Holding (in India) Latest 2023

FAQ's On Sovereign Gold Bond

Who is the issuer?

The Bond is issued by Reserve Bank on behalf of Government of India.

Why should I buy SGB rather than physical gold?

The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

Where can investors get the application form?

The application form will be provided by the issuing banks/SHCIL offices/designated Post Offices/agents. It can also be downloaded from the RBI’s website. Banks may also provide online application facility.

What is the minimum and maximum limit for investment?

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market. The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions

Too know more visit: FAQ’s answered by RBI on official site.