InvestorQ : Can you tell me about the latest issue of the sovereign gold bond issue that is opening on 10-January? Do you suggest investing in these SGBs?
vidhya Laxmi made post

Can you tell me about the latest issue of the sovereign gold bond issue that is opening on 10-January? Do you suggest investing in these SGBs?

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sarah Leo answered.
4 months ago
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The ninth tranche of the Sovereign gold bonds issued by the government of India will open on 10-January and the issue closes on 14-January. The issue will be open for 5 days and you can buy this from any bank or post office with basic KYC. SFBs and payment banks cannot market gold bonds. The issue price for this tranche has been set at Rs.4,786 per gram and investors who invest via the digital route will get additional discount of Rs.50 per gram.

Considering that digital investors will only have to pay Rs.4,736 per gram, would the deal be interesting. I would reiterate that look at gold as a protection allocation in your portfolio and not as an investment. Of course, the SGB is one of the most attractive gold products in India. It offers 2.5% annual interest which is payable half-yearly. In addition, the long term capital gains on the sale of the gold bonds are fully exempt from capital gains if held for 8 years.

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