InvestorQ : Would you recommend me to invest in the Series X – Gold Bonds series that is currently open for subscription?
vidhya Laxmi made post

Would you recommend me to invest in the Series X – Gold Bonds series that is currently open for subscription?

Answer
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6 months ago


The X-Series of Sovereign Gold Bonds (SGB) opened on March 02 and will be open till March 06. The gold bonds will issued at a price of Rs.4260/gram and a discount of Rs.50/gram will be available for online applications. Such applications for gold bonds can be made through your bank or through post offices or even through Stock Holding Corporation of India (SCHIL). These bonds will be issued on 11 March with a lock-in period of 7 years and these bonds will carry 2.50% rate of interest, which will be payable semi-annually. Regarding your decision to invest in the SGB, you cannot look at it as an appreciating asset class. Instead, it must be looked at as an asset class to diversify your overall portfolio risk. From that perspective, you don’t need to be too worried about the price. Instead try and spread your gold allocation across several tranches so as to get the SIP benefit. Finally, remember to hold it till maturity as in that case any capital gains will be entirely exempt from tax.