The Indian government introduced the third series of Sovereign Gold Bonds (SGBs) for the fiscal year 2023-24 earlier this. The subscription period for the Sovereign Gold Bond Series 2023-24 Series III commenced on December 18 and is set to conclude on Friday, December 22, 2023. The issuance date for SGB Series III is scheduled for December 28, 2023.
This marks the third tranche of SGBs for the fiscal year, with the first series launched in June 2023 and the second in September 2023. Following the December series, the subscription period for SGB Series 2023-24 Series IV will be open from February 12 to February 16, 2024, with the issuance date set for February 21, 2024.
Sovereign Gold Bonds are available for purchase through Scheduled Commercial banks (excluding Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and recognized stock exchanges, including the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. This initiative provides investors with a structured and regulated avenue to invest in gold without the need for physical possession. For a detailed step-by-step guide on how to apply for SGBs click here.
Now coming to the should you subscribe to SGBs?
Sovereign Gold Bonds (SGBs) present a secure investment option for those willing to commit to an eight-year term. Unlike physical gold, SGBs offer an additional advantage by generating income through interest payouts. Investors receive an interest rate of 2.5% along with potential price appreciation, a feature not offered by other gold investments.
The historical resilience of gold during economic fluctuations, geopolitical uncertainties, and currency devaluations enhances its status as a safe-haven investment. This resilience has driven significant demand for gold as investors seek stability and a hedge against uncertainty in the global economy. Amidst ongoing geopolitical tensions, gold continues to retain its appeal as a reliable hedge against uncertainty.
Talking about the advantages of applying to an SGB, Anuj Arora, Co-founder, SahiBandhu Gold Loans said “The advantage of Sovereign Gold Bonds (SGBs) over buying physical gold is trifold. Firstly, you don’t have to be afraid of theft or the hassle of storing the gold securely. Secondly, SGBs offer a unique combination of benefits – not only do they appreciate in gold value, but they also provide a fixed interest rate of 2.5% per annum paid semi-annually on the nominal value. Their government backing ensures a higher level of safety compared to market-dependent alternatives, making them an attractive and secure investment avenue. Thirdly, in times of financial need, one can avail instant gold loans against SGBs.”
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