New Delhi: In times of pandemic, gold has attracted investors because it is seen as a safe haven asset in uncertainty. As per the Reserve Bank of India (RBI) notification, the price offered in this Sovereign Gold Bond Scheme 2021-22 Series IV is Rs 4,807 per gm. The government in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond is Rs 4,757 per gm.
The largest public sector bank has informed its customers through a tweet on reasons to invest in this scheme.
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Check the reasons below to invest in Sovereign Gold Bonds:
- Highest Returns: Among other available investing options in gold, SGBs offer the highest returns, which includes capital appreciation (market returns due to increase in the prices of gold) as well as additional interest @ 2.5 percent per annum.
- Low Tax: Even as the annual interest income of 2.5 percent received is taxable but if you hold SGBs till maturity, there will be no capital gain tax on the investment. But in the case of Gold ETFs or gold funds capital gains earned after three years of investment are taxed at 20 per cent after indexation.
- Loan facility: Can be used as collaterals for loans
- No storage problem: Secure, no storage hassles like physical gold
- Liquidity: Tradable on exchanges
Besides this there will be no application of GST, making charges, unlike physical gold which makes it a lucrative option to invest.