Sovereign Gold bond 20-21 Series IV

Sovereign Gold Bond 20-21 Series IV will open for subscription on 6^th July 2020, the same will be open till 10^th July 2020.

 

The issue price for the sovereign gold bond has been fixed at Rs 4,852/- per gram of gold.

 

Discount of Rs 50/- per gram will be given to investors who make online application and payment by the digital mode. For online application, payment is to be made at the rate 4802/- per gram.

 

Gold as an Investment

 

Gold is one of the most popular precious metal since centuries. It can be passed on from one generation to another. It is also used for making jewellery and has a consumption value.

 

Gold is close to heart of Indians as we can attach gold to following  values

• Emotional value : Weddings in India cannot be imagined without Gold. Gold Jwellery is an integral part of Indian married women.
• Investment Value : Gold is an important asset and preferred as a hedge against inflation and as a safe heaven in case of economic uncertainties.
• Consumption Value : Indians wear gold ornaments in daily life. It is a product for self consumption as well as for giving gifts.

 

Pros and Cons of Different Investment Options

Recommendation

 

Investment in Gold should not exceed 10% of your Portfolio. Invest for a long term as the price of the yellow glittering asset is at its peak.

 

Invest in Sovereign Gold Bonds which will yield you yearly interest of 2.5% (taxable) apart from the Tax free Capital gain if held till maturity.

 

An individual can buy 4Kg worth of gold every year as the ceiling has been fixed on a fiscal year (April-March) basis.

 

The Bonds can be transferred or gifted to relative/friend who fulfill the eligibility criteria. The bonds can also be used as collateral for loans from Banks/NBFC’s. TDS provisions are also not applicable on the bond interest payments.

 

For more details of Sovereign Gold Bonds click here