InvestorQ : How do I know if gold bonds will list at a premium or at a discount?
Lavanya Subramanian made post

How do I know if gold bonds will list at a premium or at a discount?

Answer
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ishika Banerjee answered.
1 year ago


That depends on the price at which they issued and the price at which the bonds are listed after 6 months completion. They certainly will list at a premium. Remember, the first tranche issued in November was done at a price of Rs.2682/gram. The Indian Bullion and Jewellers Association (IBJA) has estimated the current price of the gold bond at the end of 6 months when listing was due, to be in the range of Rs.3000-3050 / gm. That would mean that most investors in the first tranche will benefit from the premium listing of the bond. Of course, as in the case of closed ended funds, there will be an illiquidity discount on the market price, but it will still command a substantial premium to its issue price in November.