Sovereign Gold Bond Scheme: Subscription For 2021-22 Series 9 Opens Today. All You Should Know

The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22 has been fixed at Rs 4,786 per gram.

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New Delhi: The five-day subscription of the new series of Sovereign Gold Bond scheme 2021-22 has opened on Monday for investors. The Reserve Bank of India (RBI) will issue the bonds on behalf of the government.

The bonds will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges -- NSE and BSE.

Here’s What You Should Know About The Issue

The bidding will remain open till 14th January. The issue price for the next tranche of Sovereign Gold Bond Scheme 2021-22 has been fixed at Rs 4,786 per gram.

The nominal value of the bond "works out to Rs 4,786 per gram of gold", the central bank said in a statement.

Also, note that online subscribers will get Rs 50 per gm relaxation as the issue price for those bidders paying digitally while applying has been fixed at Rs4736 per gm.

The issue price for Series VIII, which was open for subscription from November 29 – December 3, 2021 was Rs 4,791 per gram of gold.

The bonds are denominated in multiples of gram(s) of gold with a basic unit of one gram. The tenor of the bond will be for a period of eight years with an exit option after the 5th year to be exercised on the next interest payment dates.

The minimum permissible investment is one gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).

The know-your-customer (KYC) norms will be the same as that for the purchase of physical gold.

The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings

Should you subscribe?

Going by the current trend, gold prices have been trading near a two-month low. Experts believe that it's time to watch the market as they expect a further correction in the gold price. The weakness in gold prices is mostly due to the minutes of the US Fed that hinted at a faster rate hike and also a reduction in bond buying than earlier projections. It will be ideal to track how the global central banks will unwind their monetary position besides watching the movement of the US dollar that will guide gold prices in 2022.