Would you suggest buying the latest issue of the Sovereign Gold Bonds issue?

The government announced its Sovereign Gold Bond (SGB) Scheme 2021-22 - Series X and the last gold bond series of this fiscal year 2021-22. This subscription of gold bonds will open on 28th February and will close on Friday 04th March. For the latest issue of the SGBs, the RBI has set the price for the issue at Rs.5,109 per gram. However, digital applications get a discount of Rs.50 per gram so the effective price works out to Rs.5,069 per gram.

Sovereign Gold Bonds are sold by the RBI on behalf of the government. They are marketed through SHCIL, designated post offices, banks and stock exchanges. Gold, being a safe haven in troubled times, analysts are in favour of investing in the latest tranche of gold bonds. Although the price of the bonds is higher than the previous issue, the fact is that the price of gold has gone up. Also, amidst geopolitical tensions, this is a safe haven asset class.