May 7, 2021-Markets will reopen on Monday

Create an Account

Its Free and always will be!

Sign up or login with your social accounts

10 Things To Know Before You Invest In Sovereign Gold Bonds

Sovereign Gold Bonds are an ideal investment option for individuals who aim to earn returns linked to the price of gold. These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. The scheme has numerous benefits for an individual out of which one is exemption of the capital gains tax arising on redemption ofSovereign Gold Bonds. However, in case of long term capital gains, individuals get the benefit of indexationon transfer of bond. Besides, Sovereign Gold Bonds can also be pledged as security while availing loans.

For the financial year 2021, the RBIhas launched the Sovereign Gold Bond scheme on 20th April and the same will remain open until 24th April. The issue price for the gold bonds has been fixed at Rs. 4,639.

Before applying for the gold bonds here are a few things that you must know.

Top 10 Things To Know Before You Invest In Sovereign Gold Bonds Scheme 2020-21 Series I:

  1. When you apply for gold bonds online by making digital payment, you get a discount of Rs. 50 per gram. In such case, the issue price after discount becomesRs. 4,589.
  2. The data of recent closing gold price published by Indian Bullion and Jewellers Association Ltd. for gold of 999 purity determines the issue price of gold bonds.
  3. One gram of gold is the minimum permissible investment in gold bonds.
  4. Designated post offices, banks, Stock Holding Corporation of India (SHCIL) and stock exchanges (NSE and BSE) are entitled to sell the gold bonds.
  5. The maturity period of the gold bonds is 8 years. However, you have the option to exit the scheme after the fifth year.
  6. The annualintereston gold bonds is 2.50%. The interest income gets added to your income and taxed accordingly.
  7. From 14 days of the issue, the bonds can be traded in the stock exchanges subject to the liquidity.
  8. The capital gain arising on the gold tax bonds on maturity is tax-free. This benefit of taxation is not available on other forms of investment in gold.
  9. The timeline for the gold bonds that would be issued in the first six months of 2020 are as follows;
  • Series I April 20-24, 2020
  • Series II May 11-15, 2020
  • Series III June 08-12, 2020
  1. You can redeem the bonds before maturity by either approaching the concerned bank, SHCIL offices, post office or agent 30 days prior to the coupon payment date.


Sovereign Gold Bonds is a lucrative investment option. Although, the Coronavirus pandemic has brought the economies of the world to a standstillbut RBI still expects a good response to scheme even when there is uncertainty due to COVID-19.

For any further assistance or information, you may get in touch with Indira Securities on our contact numbers - 7970007871, 0731-4797170 or 0731-4797171.

Rate this blog entry:
What is Fundamental Analysis ?
How to buy Sovereign God Funds in India, How good ...

Popular Investing Books

Roger Lowenstein
John Brooks
Elaine Henry
Jack Murrin
Christopher W. Mayer
Peter Lynch

Search Blogs

Most Popular Authors

Top 100 Investment Blogs

 586 Investors Online.

Be a Smart & Well Informed Investor!
Join Today its Free.
Register or Login with just one Click using your Social Account