17-Apr-2023
2 mins read
.jpg)
 1.jpg)
.jpg)
Upcoming Issue Date, Pricing, Interest Rate, Calculator, Advantages, and Online Purchase Process
For Indians, gold holds a special significance beyond its market value. Nowadays, there are alternatives to owning gold without the associated risks or making wastage charges. Sovereign Gold Bonds, offered by the Reserve Bank of India (RBI) and the Government of India, allow you to own gold in the form of a certificate.
What is a Sovereign Gold Bond?
In November 2015, the Government of India launched the Sovereign Gold Bond (SGB) Scheme as an alternative to investing in physical gold. Over the years, the market’s demand for physical gold has significantly declined. SGBs not only monitor the asset’s export-import value but also ensure transparency.
SGBs are government securities and are deemed safe. Their value is expressed in multiples of grams of gold. With SGBs seen as a substitute for physical gold, there has been a considerable increase in investors. To purchase an SGB, you must approach a SEBI-authorized agent or broker. Upon redeeming the bond, the corpus (based on the current market value) should be deposited into your registered bank account.
| Criteria | Physical Gold | Gold ETF | Sovereign Gold Bond |
| Returns/Earnings | Diminished due to making charges | Slightly lower than actual gold returns | Higher than actual gold return |
| Safety | Risk of theft | Highly safe | Highly safe |
| Purity | Gold purity is uncertain | High, as it’s in electronic form | High, as it’s in electronic form |
| Gains | LTCG after 3 years | Long-term capital gain after 3 years | LTCG after 3 years (No capital gain upon maturity) |
| Loan Collateral | Accepted | Not accepted | Accepted |
| Tradability | Limited | Traded on the stock exchange | Tradable and redeemable |
| Storage expensed | High | Low | Low |
Sovereign Gold Bond 2022-23 Series IV
| Subscription Period | Date of Issuance | Investment Limit | Interest | Issue Price Per Gram |
| March 6-10, 2023 | March 14, 2023 | 1 gm to 4 kg | 2.5% p.a | Rs. 5,611 (Rs. 5,561 for online application) |
The RBI has not yet announced the next SGB issue. Sovereign Gold Bonds serve as modern investment options for people who are looking to diversify their portfolios with gold holdings.