The Sovereign Gold Bond programme opened for subscription on Monday. This is the sixth instalment of the government-run gold bond scheme this financial year. Under the sixth series of the Sovereign Gold Bond 2020-21, bonds linked to the market price of gold can be purchased at an issue price of Rs 5,117 per unit. Each unit of the gold bonds, issued by the Reserve Bank of India on behalf of government, is equivalent to one gram of gold. The sixth tranche of the gold bond programme comes at a time when gold rates have receded about 8 per cent from their all-time highs, registered this month.
This will be the sixth tranche of the Sovereign Gold Bond (SGB) 2020-21 programme, subscription under which first opened in April this year. (Track Current Gold Rates Here)
(Also Read: How Gold Bond Issue Price Is Calculated)
Here are few important details to know about the government-run gold bond programme:
Bonds under the SGB scheme have a maturity period of eight years. In other words, your investment in the gold bonds, often touted as an effective way of parking funds in non-physical gold by wealth planners, is locked in for eight years after investment.
However, that doesn’t mean you can’t liquidate your investment before eight years. An exit option, subject to certain conditions, is available after the first five years.
