Last Updated: December 19, 2022, 10:47 AM IST
In November 2021, the RBI made the gold bonds available at a price of Rs 4,791 per gramme.
Investors who apply online and pay for the application using digital means receive a discount of Rs 50 per gramme less than the nominal pricing.
The Reserve Bank of India has launched the Sovereign Gold Bond Scheme 2022-23 – Series III, the subscription period for which will remain open from December 19 to 23. The date of issuance of the bonds is scheduled on December 27, 2022. So if you want to invest in Sovereign Gold Bonds, it is your last chance. Are you bothered about whether it is the right time to invest in gold bonds? If yes, then read further.
The nominal value of the bond is equal to Rs 5,409 per gramme of gold based on the simple average closing price for 999-purity gold for the last three working days of the week prior to the subscription period, December 14, 15, and 16, 2022, as published by the India Bullion and Jewellers Association Ltd (IBJA). Investors who apply online and pay for the application using digital means receive a discount of Rs 50 per gramme less than the nominal pricing.
The RBI said on Friday that the Series XII gold bonds, issued in December 2017 at a price of Rs 2,890 per gramme, will be redeemed on December 17 at a cost of Rs 5,409 per gramme, a gain of 89.16%.
In November 2021, the RBI made the gold bonds available at a price of Rs 4,791 per gramme. This has since increased to Rs 5,409, representing an increase of 12.89%.
With the 2.50 per cent interest rate the RBI offers, the return for investors after a year is 15.39 per cent. At the current market pricing, investors who purchased gold bonds in November 2019 for Rs 3,795 per gramme are sitting on a gain of 42.52 per cent.
Gold bonds pay interest at a rate of 2.50 percent (fixed rate) per year on the amount of the initial investment, while banks give a 6.70–7% return on one-year deposits. The investor’s bank account will get interest credits twice a year, and the last interest payment will be due at maturity along with the principal.
The draw is that gold bonds will be redeemed in Indian rupees at maturity, with the redemption price based on a simple average of the closing price of 999-purity gold over the previous three business days as reported by the IBJA.
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