New Delhi: In the realm of economic news, the curtain has risen on the latest chapter of the Sovereign Gold Bond (SGB) saga for the year 2023-24, marked as Series II, commencing on September 11 (Monday). The cost of securing these coveted gold bonds stands at an enticing Rs 5,293 per gram, an attractive proposition for potential investors. The window for acquiring these bonds remains open until September 15.

The Reserve Bank of India (RBI) has meticulously determined the nominal value of the bond, which hinges on the simple average of the closing price of 999-purity gold during the three preceding working days, spanning from September 6 to September 8. This calculation culminates in an inviting figure of Rs 5,923 per gram of gold.

To sweeten the deal further, the RBI has introduced a compelling incentive for those who choose the digital route. Online applicants, who embrace the convenience of the digital realm for both application and payment, shall be bestowed with a Rs 50 discount. As a result, the issue price of the Sovereign Gold Bond for these tech-savvy investors amounts to a tantalizing Rs 5,873.

The process of procuring the Sovereign Gold Bond Scheme 2023-24 has been streamlined for ease and accessibility. Interested parties can obtain these bonds through various channels, including banks, the Stock Holding Corporation of India Ltd (SHCIL), post offices, the National Stock Exchange (NSE), and the Bombay Stock Exchange (BSE).

In a move designed to foster online participation, the Government of India, in collaboration with the Reserve Bank of India, has extended a generous Rs. 50 discount per gram from the issue price to those who opt for online application and digital mode payment. Consequently, the issue price of the Gold Bond dwindles to a mere Rs. 5,873 per gram.

Turning our attention to the interest rate, investors in the Sovereign Gold Bond Scheme shall be gratified with a fixed rate of 2.50 percent per annum, disbursed semi-annually on the nominal value.

The eligibility criteria for participation in the Sovereign Gold Bond Scheme 2023-24 have been set, limiting access to resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.

As for the tenure of these bonds, investors are in for a long-term commitment spanning eight years. However, they do have the option to seek premature redemption after the fifth year, a choice they may exercise on the date corresponding to the interest payout.

Sovereign Gold Bond Scheme: Second Tranche Offering

Gold Prices Surge to Two-Month High as Investors are in dilemma What to do?