The second tranche of the Sovereign Gold Bond Scheme (SGB) 2022-23 will be opened for subscription today, 22 August, and will remain open till 26 August.
According to the Reserve Bank of India, the gold bond will be issued at a price of Rs 5,197 per gram of gold. The issue price of the sovereign gold bond is fixed on the basis of the simple average value of the closing price published by the Indian Bullion and Jewellers Association (IBJA).
The price of the bond is issued for gold of 999 purity in the last three business days (dates are 17, 18, and 19 August).
The latest SGB offering price is Rs 106 higher than the previous series announced in June this year.
The price of the previous sovereign gold bond was Rs 5,091 per gram. The settlement date for the Sovereign Gold Bonds 2022-23 (Series II) is 30 August 2022.
"The issue price of the bond during the subscription period shall be Rs 5,197 per gram," the finance ministry said. The RBI issues the bonds on behalf of the central government.
The bonds are sold through banks, the Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges — NSE and BSE. The bonds will be denominated in multiples of grams of gold with a basic unit of 1 gram, with the tenure of the bond being 8 years. The buyer can exit the agreement after the fifth year.
Discount on Buying Sovereign Gold Bond Online
Buyers can get an online subscription and make an online payment at a discount of Rs 50. This means the price will come down to Rs 5,147 per gram.
As per the official statement, "The Government of India, in consultation with the Reserve Bank of India, has decided to allow a discount of Rs 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 Rs 5,147 (Rupees five thousand one hundred forty-seven only) per gram of gold."
The subscription for the new round of SGB will begin on 22 August. The buyers can subscribe till 26 August and the issuance of bonds will take place on 30 August. Sovereign gold bonds are one of the best investment options for people who want to invest in gold, since one gets an additional rate of interest above the capital appreciation on gold.