Friday, Jun 02, 2023 | New Delhi 31*C

Last chance to buy cheap gold, 'Gold War' is going on in the world, gold will dominate in the future!

Most financial experts recommend including gold in your portfolio. In such a situation you have a chance to buy cheap gold today. Don't let it get out of hand. Know what are the benefits of Sovereign Gold.

The public issue of Sovereign Gold Bond Series IV is closing on February 16, which means today is the last day to invest in it. In this you can buy gold at Rs 6,263 per gram. Through Sovereign Gold Bonds, you are given the opportunity to invest in 99.9 percent pure gold of 24 carats by the government. These bonds are announced by RBI.

Let it be known that SGBs cannot be bought forever, for this the date is announced from time to time. Earlier there was an opportunity to buy it on 22nd December. Most financial experts recommend including gold in your portfolio. In such a situation you have a chance to buy cheap gold today. Don't let it get out of hand. Know what are the benefits of Sovereign Gold.

Gold will dominate in the future!

If we talk about the countries of the world, gold has been the main business since ancient times. Even today, the gold reserve that belongs to that country and based on that country can print its own currency, it can be said that gold war is going on in the world. In simple words, before Corona, China used to export gold, but after Kovid, when it stopped exporting and started importing gold, other countries are also gradually accumulating gold.

We all know that if any country wants to do business with another country, it has to do it in US dollars. The increasing influence of the dollar also causes problems for many countries and the US sanctions from above are different, as we saw during the Russia-Ukraine war that the US Sanctions imposed on Russia means that whatever assets Russia has in dollars are frozen, it cannot trade with any country in dollars. Then in the middle of all this now there is the entry of UPI which has opened a new avenue for this problem.

Currently, because of UPI, business in dollars in the world has come to 50 percent, which was around 75 percent earlier. Then now the world is gradually leaning towards gold. Then according to experts, gold can reach 1 lakh in the near future. Then if we talk about gold bonds then let's have a look at the returns of gold bonds, it is estimated that this may be the last gold bond series of 2023-24. In this fourth scheme this year, the highest ever record of investment in sovereign gold bonds may also be broken.

Earlier in 2020-21, 32.4 tonnes of gold was subscribed to SGB. Now, during the 9 months till December in 2023-24, SGB has taken subscription for 31.6 tonnes of gold. In such a situation, it is predicted that with the arrival of the new installment of SGB in February, the current business year 2020-21 will break the record. In 2020-21, public interest in the Sovereign Gold Bond Scheme increased due to Covid-19.

SGB ​​was superhit in Kovid-19!

In fact, due to the lockdown, jewelery stores were closed for a long time, so physical purchase of gold was not possible. At the same time, it was easy to invest in gold online through SGB by paying through net banking. But due to reduced subscription in SGBs in 2022-23, it is believed that now the sovereign gold bond scheme is starting to shine and investment in it has increased due to lack of offline sales during Covid-19. But record inflows into sovereign gold bond schemes in 2023-24 are sure to put an end to this speculation. In the current business year, April-December 2023, subscriptions to SGB have increased by 157 percent compared to April-December 2022. This has also strengthened the possibility that people are opting for this method of investing in gold.

SGB ​​is helpful in saving imports

Since the launch of the Sovereign Gold Bond Scheme in 2015-16, more than 134 tonnes of gold have been sold under the SGB. This is a purely financial product which means that the same amount of import is saved. After a decline in the last financial year, the Sovereign Gold Bond scheme is seeing more success this year as fewer installments are now being withdrawn under the SGB ie only one installment a quarter. Apart from this, excellent returns on recently matured first tranches also motivate investors to invest money in them. In addition, SGB is being aggressively marketed to investors through various media.

Investors got bumper profits from SGB

Long term capital gains tax is also not applicable on the returns received from this. Through the first installment, people have got around 12.9 percent annual return, which is much higher than bank FD. In 2015, there was an opportunity to invest in SGB at the rate of Rs 2684 per gram. At the time of its first stage maturity, it rose to Rs 6132 per gram. That is, a person who invested Rs 1,34,200 to buy 50 grams of gold got Rs 3 lakh 6 thousand 600 at maturity after 8 years.

SGB ​​helpful in tax saving

Sovereign Gold Bond (SGB) pays investors a fixed interest every year. It is paid on half yearly basis. Its interest income is taxed. Interest earned on Gold Bonds in a financial year: Interest earned on Gold Bonds is treated as income of the taxpayer from other sources. The interest income is added to your total income and you have to pay tax according to the tax bracket you fall in. However, the maturity is completely tax free. There is no TDS on interest earned from gold bonds. Sovereign Gold Bonds have a maturity of 8 years. After completion of 8 years the return received by the customer is completely tax free, this is a special tax benefit.

What are its benefits?

The biggest advantage of Sovereign Gold is that you get double the profit in it. Firstly, at the time of maturity, the investor gets the money as per the market rate and secondly, 2.5 percent interest is also offered to the subscribers. When you buy physical gold, you have to worry about its security, but SGB has no security tension. Long term capital gains tax is also not applicable on the returns received. Apart from this, it does not come under the ambit of GST, 3 percent GST is levied on physical gold. If investors buy sovereign gold bonds through online payment, they will be charged Rs. 50 discount is available. Loan option is also available in this. In such a situation, investors can use sovereign gold bonds as collateral.

Where to buy

  • You can buy online and offline from banks
  • You can also buy it from the post office.
  • Can be purchased by a stock holding corporation.
  • There is an option to buy from BSE and NSE platforms as well.

How much gold can you buy?

Anyone can invest minimum 1 gram and maximum 4 kg of gold through SGB in a financial year. The tenure of gold bond is 8 years from the date of issue of the bond. However, pre-mature redemption can be done after 5 years. You can sell sovereign gold bonds through banks, Stock Holding Corporation of India Limited (SHCIL), post offices and stock exchanges i.e. BSE and NSE.

To invest in Sovereign Gold Bond Series IV, investors can also buy SGB through Stock Holding Corporation of India, Clearing Corporation of India, Designated Post Office, National Stock Exchange (NSE) and BSE. The price of SGB is determined based on the average of the closing price of gold of 99.9 purity declared by the India Bullion and Jewelers Association for the last three working days of the week preceding the subscription period. Investors who subscribe online also get a discount of Rs 50. SGB ​​has no risk of default as it has a sovereign guarantee. To get a loan, sovereign gold bonds can also be pledged as collateral.

Download App from

Cryptocurrency News

Bitcoin Price
₹ 23,15,263 -2.89%
Bitcoin Price
₹ 23,15,263 +2.89%
Bitcoin Price
₹ 23,15,263 +2.89%