Gold prices in India have corrected sharply from record highs hit earlier this month. In futures markets gold currently trades at ₹51,400 levels per 10 gram as compared to August 7 highs of ₹56,200.
Silver MCX 67500 To 73254 = 5754 Point Up
Gold MCX 51300 To 52100 = 800 Points Up
GOLD SILVER SELL KARNA MANA HAI
“Sovereign gold bond is an effective way to invest in non-physical gold, wherein an investor does not have to worry about the storage of gold as it is in a demat form and there are no local taxes that a buyer needs to pay if buying physical gold,” says Nish Bhatt, Founder & CEO of Millwood Kane International, an investment consulting firm.
Here are 10 things to know about latest gold bond scheme:
1) The Sovereign Gold Bond Scheme 2020-21-Series VI remains open till September 4.
2) The issuance date of this latest tranche of gold bonds will be September 08, 2020.
3) Sovereign gold bonds, which are government securities denominated in grams of gold, are issued by RBI on behalf of the Government of India. The investors will be issued a holding certificate for the same.
4) Gold bonds have a maturity period of eight years with an exit option after fifth year.
5) Gold bonds are sold through Bonds scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and stock exchanges.
6) The redemption price is based on the then prevailing price of gold – simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.
7) If the gold bond is held in demat form, it can be traded on exchanges, offering an exit route before five years, subject to liquidity. Bonds are tradable on stock exchanges within a fortnight of the issuance. Analysts say that investing in gold bonds is a good idea if you plan to hold gold till the bonds’ maturity.
9) Gold bonds can be can be used as collateral for loans.
10) Gold bonds offer an annual interest rate of 2.50% to investors. Capital gains, if any, at maturity is tax-free. This is an exclusive benefit available on gold bonds.
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