Gold Bond Scheme’s New Tranche Opens for Subscription Today

SEATTLE (Scrap Monster): The seventh tranche of sovereign gold bond scheme (SGB) by the Indian government will open for subscription today, 25^th October, 2021. The scheme will be open for a period of five days starting today. The date of issuance of the bonds has been fixed as 2^nd November, 2022.

According to Ministry press release, the issue price of the bond has been fixed at INR 4,765 per gram of gold. The customers who purchase the bonds online by subscribing and paying online will receive a discount of INR 50 per gram of gold. For them, the price has been fixed at INR 4,715 per gram.

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The current tranche of gold bonds offers customers an opportunity to buy gold at current low levels, as the prices have come down from their peaks and especially at a time when forecasts suggests strong outlook for the yellow metal in the near-to-medium term. The bonds are considered as a key portfolio diversifier and a hedge against uncertainties in markets, thus making them a good buy.

As usual, the tenure of the bond will be for a period of eight years, with an option to exit after the fifth year. The minimum permissible investment is being fixed as 1 gram.

The government had launched the scheme for the first time in November 2015, mainly aimed at reducing the rising demand for physical gold in the country.