Sovereign Gold Bonds December 2020 (Series IX of 2020-21) issue would open for subscription on 28th December, 2020. Sovereign Gold Bond scheme (SGBS) 2020-21 Price is based on the average price of the preceding 3 days of the issue opening date which is fixed by Govt of India. SGBS offers Rs 50 per gram as discount to investors who invest online in demat form. In the article, I would provide Sovereign Gold Bond December 2020 (Series IX of 2020-21) scheme issue details.
What are Sovereign Gold Bonds?
You can skip this section if you are already familiar about SGB.
Indians have been buying gold on all auspicious occasions, even though there is no requirement of gold considering the price appreciation in the future. In view of that, Govt of India has been issuing Sovereign Gold Bond Issue where one can invest in gold in grams, get interest every 6 months and also get the equivalent amount of gold amount on maturity. This is as good as investing in physical gold, but getting interest every 6 months in addition.
Sovereign Gold Bonds Dec-2020 (Series IX) – Issue dates and Price
Sovereign gold bond 2020-21 dates (Series IX) – 28th December, 2020 to 1st January, 2021
These bonds are issued by RBI on behalf of the Government of India, hence are considered as one of the safest investment options.
These gold bond units would be issued to investors on 5th January, 2021 after subscription is closed.
These bonds would carry 2.5% interest rate per annum, which is payable every half year.
Sovereign gold bond December 2020 price is fixed at Rs 5,000 per gram. Investors who are investing through online/demat form would get a discount of Rs 50 per gram.
The sovereign gold bond scheme has a tenure of 8 years. However, one can exit from these bonds after 5 years from the date of subscription on interest dates.
These Sovereign Gold Bonds are issued in denominations of 1 gram of gold and in multiples of 1 gram.
Minimum investment is equivalent to 1 gram of gold.
How to apply for Sovereign Gold Bonds Dec 2020 issue?
The Bonds will be sold through Scheduled Commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges i.e. NSE/BSE.
I would recommend you to buy through demat form so that everything is online and you also get a Rs 50 discount per gram.
Who can invest in these Sovereign Gold Bonds?
We have provided our view earlier. You are the best judge to check whether you can invest in these bonds based on your investment objective.
1) Investment purpose – You might be getting tempted with gold price appreciation in the last couple of years. But in the last 10 years, returns from gold are not that great. If you want to diversify your portfolio by investing some part in gold, you can invest in gold mutual funds. Alternatively, you can invest in some of the balanced mutual fund schemes which can give you 12% to 15% annualized returns though not guaranteed.
2) Future Jewellery need – Are you planning to accumulate gold for utilizing them in the future. This could be for gifting ornaments to your spouse or accumulating gold for your daughter’s marriage. If your answer is yes, indeed it’s one of the best investment options. Don’t think about 2.5% interest rates as they are small returns. No one can predict the gold rates in future. Hence, investing small amounts in such gold schemes can help you to accumulate gold grams over a period of time. Just ensure that you withdraw such money atleast 1-2 years before your requirement and go for jewelry purchase.
Can I buy Sovereign Gold bonds from secondary market?
Its indeed a best option. One can check our article earlier about some of the best sovereign gold bonds from the secondary market.
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