Sovereign Gold Bonds 2021-22 Series IX opens on January 10, 2022

Sovereign Gold Bonds 2021-22 Series IX opens on January 10, 2022Sovereign Gold Bonds 2021-22 Series IX opens on January 10, 2022

RBI has announced the details of Sovereign Gold Scheme Series IX of 2021-2022. Sovereign gold bonds offer a fixed rate of interest and has a tenure of 8 years. Generally, investment in gold is considered for diversification as well as for hedging. Govt of India has announced this scheme to discourage Indians to hold physical gold. These bonds are issued regularly during the year. Details of the next tranche of gold bonds are announced now. In this article, we would provide Sovereign gold bonds 2021-2022 Series IX details, subscription dates and who can invest in these gold bonds.

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Sovereign Gold Bonds, Series IX – Issue Details

These gold bond scheme would open for subscription on Monday, January 10, 2022 and closes for subscription on Friday, January 14, 2022. These are available for 5 days for subscription.

These bonds would be issued on settlement date which is January 18, 2022. Means the units would get credited to your account by this date.

RBI has fixed the sovereign gold bond price of this tranche as Rs 4,786 per gram of gold. Generally the gold price is decided based on the last 3 day average gold price of 999 pure gold, preceding the previous week of the issue. This gold price is fixed by Indian Bullion and Jewellers Association.

These gold bonds offer Rs 50 per gram discount if investors buy them on digital online mode. Net gold price per unit would be Rs 4,736 after discount if they buy online / digital mode.

These bonds offer a fixed rate of interest of 2.5% per annum. This interest would be paid half yearly.

Investors need to invest in a minimum of 1 gram of gold of SGB.

The tenure of these gold bonds is 8 years. Investors can sell on stock exchanges before maturity date. However the unit price might be lower depending on the demand from the buyers.

There is no capital gains tax on redemption of sovereign gold bonds at maturity.

These sovereign gold bonds can be used as collateral for taking loans.

How to invest in these bonds?

If you have demat account, the process is very simple. You can login to your demat account, visit gold bond section, select these bonds and make payment. These bonds would be credited in your demat account on the settlement date.

If you do not have demat account, you can go offline process. You can login to your bank website, select the gold bond section, purchase them. You would get the gold bond certificate to your registered mail ID.

In future if you lost your gold bond certificate, it is difficult to trace them out if you go with offline / physical certificate mode. Hence it is advisable to purchase only through demat account. There is no loss of gold certificate and the same time the maturity would be credited to your demat linked bank account.

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Who can buy these Sovereign Gold Bonds Series IX of 2021-2022?

Many investors believe that investment in gold can be used for diversification.

If you want to buy physical gold after 8+ years for gifting gold to your spouse, or to your daughter and worried about gold price appreciation, you can invest in gold bonds now. You can get 2.5% interest and based on the gold price appreciation, you can get the gold value on maturity.

Many investors believe that gold can be used for diversification beyond equity and debt.

You can also invest in sovereign gold bonds through secondary market that which are trading on NSE at lower prices.

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Suresh KP

4 comments

  • Shashi

    Hi Suresh Sir, isn’t this the 9th (IX) series? So when I search this in Upstox it shows as 2.50%GOLDBONDS2029SR-IX for INR 4690.
    Why the year shows as 2029 and I’m confused how to rightly search for this in the trading account to invest ?
    Kindly advise. Thank you.

  • Ravi

    I think the information needs to be corrected. This is Series IX and the retail price is 4736 per gram

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