Sovereign Gold Bond: Here's how to buy cheap gold through government scheme

The Reserve Bank of India has fixed the issue price of Sovereign Gold Bond at Rs 5,104 per gram. The RBI announced this on January 8, which has opened for subscription from today. Settlement of this issue will be on January 19.

If you invest in it through digital payment, you will get an additional rebate of Rs 50 per gram. You will be able to buy 1 gram of gold at a price of Rs 5054. That is, for 10 grams, you have to pay 5050 rupees. That is, you can get a discount of 500 rupees on the purchase of 10 grams.

Under this scheme, you can buy at least 1 gram of gold and maximum 500 grams of gold. Additionally, by investing in Gold Bond, you also get tax exemption. The government also gives you 2.5 percent interest annually in gold bonds. That is, apart from the rising prices of gold, you also get interest separately. Under this scheme, one can buy gold bonds up to a maximum of 4 kg in a financial year.

In Sovereign Gold brand, the investor does not get gold in physical form. It is safer than physical gold. Gold Bond Certificate is given to those who invest in it. And after maturity, when the investor goes to redeem it, he gets money equal to the gold value at that time.

If you want to invest in Sovereign Gold Bond then you must have a valid PAN. You can apply for it to all commercial banks (except RRB, Small Finance Bank, Payment Bank), Post Office, Stock Holding Corporation of India Limited (SHCIL), National Stock Exchange (NSE), Bombay Stock Exchange (BSE) or directly through agents.

Investors who subscribed to the first issue of Sovereign Gold Bonds in November 2015 have received returns of around 93% in the last five years. These bonds mature in eight years, but the investor has the option to exit after five years. Sovereign Gold Bond is a long-term investment. The price you get when you redeem it will depend on the price of gold in the market at that time.