Sovereign Gold Bond: What Are SGBs? Check Benefits And Update

SGB News: Buying gold in India is considered very auspicious. Apart from this, it is also a very good option for investment. Today we can invest in digital gold along with physical gold. If you are also going to buy gold, then you can also invest in the second series of the Sovereign Gold Bond Scheme for the current financial year. Subscriptions for the second series of the SGB scheme will open on February 12, 2024, and close on February 16, 2024. In this, you can invest for 10 grams of gold for Rs 5,923. Let us know what are the benefits of investing in SGB?

What is Sovereign Gold Bond (SGB)? Who is the issuer?

Gold-denominated government securities are known as SGBs. They act as stand-ins for actual gold. Cash is required from investors for the issue price, and when the bonds mature, they will also be redeemed in cash. On behalf of the Indian government, the Reserve Bank is issuing the bond.

Benefits of investing in SGB

• In this, the investor gets the benefit of interest at the rate of 2.5 per cent annually.

• Investors in SGB get an exemption from capital gains tax. That means the investor does not have to pay capital gains tax.

• Investors can also use sovereign gold bonds as collateral.

• There is no security tension in Sovereign Gold Bond. While bank lockers have to be used to keep physical gold safe, there is no need for them in digital gold.

• Like shares, sovereign gold bonds can also be easily traded on the stock exchange.

• There is no GST and making a charge to be paid on buying or selling Sovereign Gold Bond.

• Withdrawals can be made from SGB before maturity.

• You get a discount when you buy online

• If investors buy Sovereign Gold Bond online or through online payment, they get a discount of Rs 50 per gram. In such a situation, investors will have to pay only Rs 5,873 per gram.

Selling SGB

You can sell Sovereign Gold Bond through banks, Stock Holding Corporation of India Limited (SHCIL), post offices and stock exchanges i.e. BSE and NSE.