The Government this time seems to be quite lucky and has a lucky charm specially with Market and tradeable securities may it be the CRUDE BLESSING or now the RISE in GOLD price which will make the first tranche of Gold bonds look highly lucrative with the returns clocking around 10% or so in less than 3 months
They have again come out with an issue for GOLD BONDS which is proving to be the most innovative scheme to curb investment in physical gold which has a double whammy of Asset blockage in non productive asset and high gold CAD with gold import rising, but lets us understand what the GOLD Bond actually is :
1. Bond Tenure is 8 years with exit options at 5th, 6th and 7th year year ending,
2. It can be used as Collateral loans.
3. It will be listed and traded on Exchanges, providing a much needed early exit window
4. They will carry a Sovereign guarantee both on interest an capital front
5. It gives equivalent of gold at the prevailing price with purity guarantee and worry free from holding, purity and other physical related issues
6. Individuals, HUFs, trusts, universities, and charitable institutions are eligible to invest
7. It is denominated in 1 gram with minimum investment of 2 grams to max 500 grams capped.
8. Interest payable is 2.75 % and is payable semi-annually.
So if you really think of investing in Gold for future – Sovereign Gold Bonds- SGB sounds a good option
Happy Investing !