InvestorQ : Do you suggest me to invest in the Sovereign Gold Bonds Series 5 that is opening on 03 August?
Dilmini Mercia made post

Do you suggest me to invest in the Sovereign Gold Bonds Series 5 that is opening on 03 August?

Answer
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Khushi Patel answered.
2 months ago


As stated by the RBI at the beginning of the fiscal year, they have worked a series of 6 bond issues in the first half as part of the time table. The Sovereign Gold Bonds Series V for the fiscal opens on 03 August and will remain open till 07 August. The gold bonds will be issued at a price of Rs.5334/gram with a discount of Rs.50/gram for digital investors.

Gold bonds are being issued by the RBI over the last 5 years and offer a good idea to participate in gold prices with an assured annual return. Gold bonds are denominated in terms of grams of gold and will also carry an interest rate of 2.50% per annum. The tenor of the gold bonds has been fixed at 8 years with an exit option at the end of 5 years.

As per the terms of the gold bonds, they will also be listed on the stock exchange. However, the benefit of capital gains tax exemption will only be available if these gold bonds are held for the full tenure of 8 years. Gold bonds offer demat holding in gold and can be used to diversify the overall portfolio by including gold as part of the allocation.