Sovereign Gold Bonds: The issue price is set at 4,791 per unit in the eighth batch
Sovereign gold bonds 2021-22: The eighth tranche of the government-run sovereign gold bond program will close for registration on Friday, December 3. The issue price is Rs 4,791 per unit, equivalent to the value of one gram. gold, applied for the eighth tranche of the 2021-22 Gold Bond Plan, according to the Reserve Bank of India (RBI). The batch release date is set for December 7, 2021. (Also read: What is a sovereign gold bond? Here’s everything you need to know )
The issue price for each tranche is fixed in rupees – calculated on the basis of a simple average of the closing price of pure 999-degree gold, by the Indian Gold, Silver and Jewelery Association (IBJA) based in Mumbai for the last three business days of the week before the registration deadline. The gold bond program is also available through the RBI Retail Direct Portal – https://www.rbiretaildirect.org.in/.
The state-run gold bond program, on behalf of the RBI, has become a popular vehicle for investing in the yellow metal in a non-physical form. Gold bonds are considered a safe bet to invest in and are related to the market price of the precious metal. After the current tranche, the gold bond program will be available to apply for two more tranches during the current fiscal. (Also read: Gold Bond Series VII-X- Key things to know )
Sovereign State Gold Bonds 2021-22 Batch VIII: November 29 to December 3: Here’s everything you need to know
Should you buy?
“The price of the gold national bond tranche-8 has been fixed at 4791/gm. Sovereign gold bonds are an effective way to gain exposure to gold. There is a cost of storage, since the form of holding is digital, plus the investor can earn 2.5%/year interest.
The government has raised more than Rs 31,000 crore funds through this scheme. SGB is a favorable path for the government to convert all gold investments to digital mode, it will help control the deficit, support the currency.
After hitting a nine-month high at the start of the month, gold prices have been trading in a tight range for the past few sessions,” said Nish Bhatt, Founder & CEO, Millwood Kane International.
Discounts for Online Subscribers
For all those who are investing in the online gold bond scheme – where the payment is made through any digital method, a discount of Rs 50 per unit will be applied, according to RBI. For those applying online, the issue price is set at Rs 4,741 per gram of gold in the seventh tranche of the sovereign gold bond scheme.
How to invest in state gold bonds
Sovereign Gold Bonds are sold through scheduled commercial banks (except small financial banks and clearing banks), Securities Corporation India Limited (SHCIL), designated post offices Clearing Corporation of India Limited (CCIL), as well as exchange-recognized shares – National Stock Exchange of India and Bombay Stock Exchange Limited. The gold bonds are held in the RBI ledger or in demat form.
