The next tranche of government-run Sovereign Gold Bond (SGB) plot of the financial year will open for subscription on Monday and will close May 15.
The issue price of the Series II of autonomous gold bond plot 2020-21 was fixed at Rs 4,590 per g, and its date of issuance will be May 19. Those using online and making repayment via electronic style will find a reduction of Rs 50 per gram.
One unit of this bond, considered among the best choices to put money into gold, is equivalent to one gram of this yellowish metal and has been priced at Rs 4,639 for its initial tranche of FY20.
By Reserve Bank of India (RBI) statistics, the initial tranche of free gold bond for this particular financial saw a listing subscription of 17.73 lakh units worth Rs 822 crore. This was the greatest ever subscription because of the problem in October 2016.
The very first issue of this autonomous gold bond strategy came in October 2015, and individuals purchased 9.14 lakh units worth Rs 245 crore. The October 2016 problem obtained the maximum subscription as investors purchased 35.98 lakh units of golden bonds worth 1,081 crores.
But following the October 2016 problem, the fascination with gold bonds was decreasing.
Other asset classes such as equities are affected severely this season minus the coronavirus lockdown investors are looking for safer assets like gold. It’s also the sole gold investment choice to pay fixed ensured interest in gold.