Sovereign Gold Bond Scheme: Apply online and save; read all about it here

Sovereign Gold Bond Scheme 2020-21 series 6 will become available for subscription from August 31st to September 4th, 2020.

If an applicant applies online for the he or she will be able to save Rs 50 per gm. Means one can save up to Rs 500 per 10 gm if decides to apply online for the Sovereign Gold Bond Scheme 2020-21 tranche 6. Photo: PTI

Sovereign Gold Bond Scheme 2020-21 series 6 will become available for subscription from August 31st to September 4th, 2020. The Reserve Bank of India made an announcement in this regard on Friday i.e. 28th August 2020. The issue price for the next tranche of Sovereign Gold Bond (SGB) has been fixed at Rs 5,117 per 10 gm by the apex bank of India. However, if an applicant applies online for the he or she will be able to save Rs 50 per gm. Means one can save up to Rs 500 per 10 gm if decides to apply online for the Sovereign Gold Bond Scheme 2020-21 tranche 6.

Making an announcement about the 6th tranche of Sovereign Gold Bond the RBI said, "The Sovereign Gold Bond Scheme 2020-21-Series 6 will be opened for subscription for the period from Aug 31, 2020 to Sep 04, 2020. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. Aug 26 – Aug 28, 2020 works out to Rs 5,117 (Rupees five thousand one hundred and seventeen only) per gram of gold."

Announcing offer for the online Sovereign Gold Bond Scheme tranche 6 applicants, the RBI said that the Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be Rs 5,067 (Rupees five thousand and sixty seven only) per gram of gold.

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Speaking on the Sovereign Gold Bond Scheme 2020-21 series 6 outlook; Anuj Gupta, Deputy Vice President — commodities and Currency research at Angel Broking said, "Sovereign gold bond series 6 will be launched on August 31 2020 for a period of 8 years with exit option after 5 years to be exercised. Guaranteed interest would be 2.50 per cent on annual basis. Investment in gold bonds is still attractive for the investors as uncertainty and lower growth in the global economy is still there. Federal bank interest rates are still lower and trade tension between US and China and geopolitical tension still exists. We recommend investing in gold bonds. We expect the gold price may move higher so investors can take price appreciation benefits coupled with guaranteed interest rate."

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