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Three More Days To Invest In Fifth Tranche Of Government-Run Gold Bond Scheme
04 Aug 2020, 05:11 PM IST 
Sovereign Gold Bond (SGB) Scheme: An issue price of Rs 5,334per gram is applicable
- The government's Sovereign Gold Bond programme is aimed at restricting gold imports for the country, which is the world's second largest consumer of the yellow metal.
- Domestic gold futures eased after touching an all-time high of Rs 54,223 on Tuesday, as global rates hovered near their highest levels ever amid rising COVID-19 cases around the world. The jewellery rate was at Rs 53,996 per 10 grams (excluding GST), according to Mumbai-based industry body IBJA. (Track Latest Gold Rates Here)
- The gold bonds are linked to the market price of the precious metal. An issue price of Rs 5,334 per gram is applicable to Series V of the gold bond scheme. The price is calculated by taking a simple average of gold rates provided by Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
- Resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions can invest in the gold bonds. (Also Read: How To Buy Sovereign Gold Bonds)
- Eligible parties can purchase the gold bonds from designated post offices, stock exchanges BSE and NSE, and the Stock Holding Corporation.
- Gold bonds come with a lock-in period of eight years, with an exit option which is available after the first five years. (Also Read: Gold's "Dream Run" May Continue, Say Analysts)
- Subscribers can earn an interest on their investment in gold bonds, at the rate of 2.50 per cent per annum, payable on a semi-annual basis.
- A discount of Rs 50 per gram is available for online subscribers, aimed at promoting digital payments.
- The interest earned out of gold bond investments is taxable. However, the capital gains are exempt from taxes individuals.
- The Sovereign Gold Bond 2020-21 scheme first opened for subscription in April.