Sovereign Gold Bonds are available at an issue price of ₹4,790 each
Sovereign Gold Bond 2021-22: The fifth tranche of the government-run government gold bond system closes today – August 13, 2021, for subscription. An issue price of ₹4,790 per unit, equivalent to the value of one gram of gold, will apply to the fifth tranche of the 2021-22 gold bond scheme, according to the Reserve Bank of India (RBI). The issuance date for the tranche is set for August 17, 2021. The fifth tranche window will open to investors on August 9, ending today, and will remain open for a period of five days, according to the schedule established for the 2021-22 gold bond program.
The state-run gold bond program – on behalf of the RBI – has become a popular means of investing the yellow metal in a non-physical form, especially amid the COVID-19 pandemic. Gold bonds are considered safer to invest and are linked to the market price of the precious metal. (Also read: What are Sovereign Gold Bonds? Here’s everything you need to know)
After the current series, the gold bond scheme is once again available for subscription. Residents, universities, Hindu Undivided Families (HUFs), trusts and charities can invest in the gold bond scheme. The interest-paying gold bonds can also be used as collateral for loans.
Sovereign Gold Bonds 2021-22 Series V: August 9 – August 13: Here’s Everything You Need to Know
Should you buy?
“The price for the fifth tranche of SGB has been set at Rs 4790/g. Investing in non-physical gold, through digital or paper gold, is highly recommended as it offers high liquidity, no storage costs and is easier to sell than physical gold. Investments in SGBs come with an interest coupon that is paid semi-annually. Investing in SGB is a superior alternative to physical gold. The investment in non-physical gold will help the government keep an eye on the currency and widen the larger budget deficit.
Rising US dollar and government bond yields due to an earlier-than-expected Fed tightening policy have largely led to an easing of gold prices. Gold prices at home and abroad have moved within a narrow range in recent months.
The latest strain of the virus, the pace of vaccination, unlocking and signs of Fed policy tightening will drive gold prices going forward,” said Mr Nish Bhatt, founder and CEO of Millwood Kane International – an investment advisory firm.
Discount for online subscribers
According to the RBI, a discount of ₹50 per unit applies to all those subscribers who invest online in the gold bond scheme. For the online subscribers – who make payment via one of the digital modes – the issue price is set at ₹4,740 per gram of gold in the fifth tranche of government gold bonds 2021-22.
