Sovereign Gold Bond opens on 9th November (Series VIII) – issue price fixed at Rs 5,177
Sovereign Gold Bond issue of Series VIII of 2020-21 would open for subscription on November 9, 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. Many investors might be planning to buy gold this Diwali. This could be right series for them. In this article, I would provide Sovereign Gold Bond November 2020 (Series VIII of 2020-21) issue details.
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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 (like Diwali), 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 Bonds 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 in addition one would be getting interest every 6 months.
Sovereign Gold Bond November 2020 (Series VIII) – Issue details
Sovereign gold bond 2020-21 dates (Series 8) – 9th November to 13th November, 2020
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 on November 18, 2020 after subscription is closed.
These bonds would carry 2.5% interest rate per annum, which is payable every half year.
Sovereign gold bond November 2020 price is fixed at Rs 5,177 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 November 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.
Sovereign Gold Bond November 2020 (Series VIII) – Who can invest?
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. Better to go for some of the balanced mutual fund schemes which can give you 12% to 15% annualized returns though not guaranteed. If you are still thinking to invest some amount in gold, you can go with gold mutual fund schemes.
2) Future Jewelry need – Are you planning to accumulate gold for utilizing them in the future. This could be for gifting jewelry to your spouse or accumulating gold for daughter’s marriage. If your answer is yes, indeed it’s one of the best investment options. Don’t think about 2.5% interest rate as these 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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Thank you for keeping us update as always well balanced info and details.
Just want to know like Gold, do we have any options in our NSE/ BSE to be able to
invest in Silver?
Hello Sreeram, Unfortunately we do not have ETFs / Mutual Funds that invest in Silver. The only way one can invest is through investing through US Mutual Funds that has exposure to silver as a commodity. But this is little tedious process as of now.
Thank you Suresh for the info.