The sixth tranche of the sovereign gold bond scheme will open from Monday and will remain open till November 2. With the festive season on, the government has decided to offer a discount of Rs.50 per gram and the bonds will be offered at Rs.2,957 per gm, the lowest price this year.
Many Indians believe that buying the yellow metal is auspicious on Dhanteras, and this launch coincides with that. There are a couple of changes in these bonds, compared to the previous issuances.One, the yearly interest payable on these bonds is marginally down to 2.5% from 2.75% in the previous five tranches. Second, these bonds are being offered at a discount of Rs.50 per gram. Earlier, bond issuances were at the nominal closing value of pure gold.
The tenure will be the same for eight years, with an exit option from the fifth year to be exercised on the interest payment dates.
Financial planners believe gold should be part of one's portfolio as its price increases in response to global events that cause the value of paper investments, like stocks and bonds, to decline.
Indians love the yellow metal and they generally buy it for two reasons -either for consumption in the form of jewellery or for investment.
These bonds are issued in denomination of one-gram of gold and in multiples there of.Minimum investment in these bonds shall be one gram with a maximum buying limit of 500 grams per person per fiscal year (April-March). The gold bond gives you the benefit of gold price investment.
These bonds will be listed and traded on the stock exchange. The government mobilised close to Rs.1,900 crore from the last two tranches of gold bonds. With the festive season round the corner, a good monsoon, widespread distributions through stock exchange, nationalised banks, post offices and individual agents, financial planners expect the collection in this series to be far higher.