Gold Bond Scheme May 2021: The first tranche of Sovereign Gold Bond Scheme 2021-22 or the first series of gold bonds this fiscal year is now open for subscription. The issue was opened this morning and will close on May 21. The finance ministry announced that gold bonds will be issued in six tranches from May 2021 to September 2021. The issue price for gold bond has been fixed at ₹4,777 per gram while investors applying and making payment online will get a discount of ₹50 per gram. 

The Government of India in consultation with the Reserve Bank of India has decided to allow discount of ₹50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be ₹4,727 per gram of gold.

“All three whether Gold Bonds or Gold Funds or Gold ETFs are an optimal way to invest in Gold as all carry minimal risk and are fairly cost effective,” said Yogesh Kalwani – head, investments at InCred Wealth.

Who can buy?

The gold bond scheme was first introduced to bring a change in the perspective of purchasing gold for financial investment. Resident individuals, Hindu Undivided Family (HUF)s, Trusts, Universities and Charitable Institutions are eligible to apply for the subscription of the bonds.

All you want to know in regards to the government-run Sovereign Gold Bond Scheme 2021-22:

  1. The Reserve Bank of India (RBI) points the bonds on behalf of the central authorities.
  2. The gold bond scheme was first launched in November 2015 in a transfer to scale back the demand for the acquisition of gold (within the type of jewelry, gold bars and so forth) and shift that a part of home financial savings into monetary financial savings.
  3. The problem date of the newest tranche of gold bonds will probably be May 25.
  4. The tenor of gold bonds is 8 years with an exit choice after the fifth yr, which is exercised on the subsequent curiosity fee dates.
  5. The bonds are bought by all banks (besides Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), a number of designated put up places of work, in addition to inventory exchanges just like the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
  6. “The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period,” the RBI mentioned citing the publication by the India Bullion and Jewellers Association Limited.
  7. The minimal permissible funding in sovereign gold bonds is 1 gram of gold.
  8. Meanwhile, gold futures on MCX crossed the important thing ₹48,000 stage per 10 gram at this time. In world markets, gold charges hit a 3-month excessive in mild of a weaker US greenback and a dip in Treasury yields. Spot gold was additionally up 0.6% at $1,852.39 per ounce.