Away from Kanchan-Mohmaya, it is difficult to find such people in mainland India. Not only in decoration, but also in the world of investment, the demand is on the rise. Gold is known around the world as ‘hedge against inflation’. Buying gold bonds also opens the way to earn. This market also has the potential to grow. Details Nilanjan De
GoLd. Gold, popularly known as ‘hedge against inflation’, is gaining popularity around the world. Already a new class of investors is investing in gold, they may increase the amount of investment in the future. The Sovereign Gold Bond Scheme, 2022-23 Series 1, has recently been discontinued, and interested investors will have to wait for the latter. In this context, I am drawing everyone’s attention to a few things, thinking about the future.
First of all keep in mind that it is possible to invest in SGB Scheme even with a small amount of capital, government regulations are so convenient. For example, if only one villager thinks of investing, he will not be disappointed. That is, the minimum investment amount is very small, so even small investors can take part here. Of course, let me also say that the government has set an upper limit, this time the maximum limit for the SGB that came was 4 kg.
[আরও পড়ুন: সকলের জন্য বিমা, প্রয়োজন সরকারি স্তরে ইতিবাচক নীতি]
Now come to your earning potential. If you buy a bond, what kind of interest will you get? The rate of interest has been fixed at 2.5 per cent on the investment amount, but it is not possible to say how much it will be in the future. However, the interest rate of a bank is usually lower (remember, interest rates are rising, so the earnings of depositors are higher now). So you may ask, if people rarely get it, why invest here at all? The answer is, the gold market has the potential to grow. In the age of inflation, investors have poured money here, and prices have risen. One of the salient features of SGB is that it is ‘tradable’ on the exchange – meaning you can sell it if you understand the opportunity. Many do.
How is interest earned? This 2.5 percent that I have mentioned will come to you as interest every six months. Accounts will start from the date of issue. It is better to say here, and knowing the ‘tradable’, you can understand that SGB you can buy online, and also hold it in a dematerialized account. The paperless system is preferred by almost everyone nowadays. Honestly, I also want to encourage everyone to apply online. A small reason for this is that you can get gold at a lower price per gram if you buy it online. This time (as was the rule before) 50 rupees was set less for online investors. This means that they have been able to buy at a lower price of Rs 50 per gram from the nominal value at the time of application.
Let’s get to know three important issues quickly.
One, SGB You can easily keep as collateral if you want to take a loan. These bonds are generally fully acceptable to lenders.
Two, But there is no GST, there is no making charge. Physical Gold, which you might buy from a gold shop a lot of the time, is not. So GST is not a national tax in this case.
Three, And of course in this context, there is no need to pay any capital gains tax in case of redemption. Capital gains, whether long term or short term, are the cause of headaches at the end of the year for many investors. This is because complex accounting comes into play when it comes to tax evasion. That is not relevant in Sovereign Gold Bonds.
How is the nominal value of the bond determined?
The Reserve Bank makes it clear that the ‘Simple Average Closing Price’ of gold plays a big role here. This price is fixed by India Bullion and Jewelers Association. The average price is taken for three specific days (the week just before the subscription period). This time, at the time of the last SGB issue, the price stood at Rs 5,091 (per gram). Investors who initially bought in dim sum with less than Rs 50 of nominal value paid Rs 5,041 per gram. Let me say here, although buyers are primarily individual investors, a unique class of investors is welcome to invest in SGB. In other words, even if it is a trust or a charitable institution, there is no obstacle.
How long does this bond last, i.e. what is the total period of investment?
The tenor of the bond is eight years, although the redemption option of the prematch is possible after five years. So it is not difficult to ‘exit’ ahead of time.