What is Gold bond scheme (SGB)

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A sovereign gold bond is a simple but a superior alternative to buying gold. Why don’t we explain the reason you need to buy a gold bond.

A sovereign gold bond is denominated in Gram of gold. You’re able to enter multiples of 1 gram (gm). Therefore, the minimum investment is just 1 gram. The utmost gold it is possible to purchase throughout gold bonds is 4% kgs per investor each year. Nomination facility is readily accessible. Remember to receive exactly that the nominee details upgraded throughout investment or you could certainly perform it later too.

Advantages of Gold Bond:

  • A gold bond can be a much better investment than physical gold as a result of many factors.
  • These gold bonds enable you to get less price than physical gold once applied online.
  • You receive a fixed rate of interest on those gold bonds.
  • Gold bonds don’t have any storage or holding price
  • These bonds take a sovereign guarantee as they’re issued by the government.
  • One other advantage of autonomous gold bond strategy is that there is no capital gains tax in maturity or redemption for different investors. Also, there is an indexation benefit if the same is moved before maturity for non-individual investors. Do understand that the interest earned is not refundable. Thankfully, there’s absolutely no TDS either through interest or salvation 
  • Last, a gold bond is extremely liquid. That is due to the fact that the investment may be applied as collateral for the loans.
Interest Rate and Calculation SGB :

You’re going to undoubtedly be surprised to understand that a significant advantage of this autonomous gold bond strategy is that a predetermined rate of interest. The golden bond rate is 2.50percent annually. Bear in mind, that really is past the gold price yield. The interest will be paid every half a year or months on the minimal price.