Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will redeem in cash at maturity. The Bond issued by Reserve Bank on behalf of the Government of India.
Investors can buy these bonds through NSE/BSE at issue price. The RBI announces a fresh sale. They are also available to buy and sell on NSE/BSE at current price like any other security.
Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on NSE/BSE at current prices.
Oct 2018 - Per financial year maximum investment limit has increased from 500 gm to 4KG for individuals and HUF.
Sovereign Gold Bonds is the "Best Gold Investment in India" because you will get the price appreciation benefit as well as 2.5% interest on your investment. When you purchase physical gold, you will get only price appreciation not annual interest.
Latest Update 7th June 2020
Sovereign Gold Bonds 2020-21 Series II is the second highest invested gold bond after 2016-I series, number of units invested are 2544294 (gold in gm) compare to 2016-I series which was 2869973.
|Gold Bond Name||Subscription Date||Issue Date|
|SGB 2020-21 Series IV||6th July to 10th July 2020||14th July 2020|
|SGB 2020-21 Series V||3rd Aug to 7th Aug 2020||11th Aug 2020|
|SGB 2020-21 Series VI||31st Aug to 4th Sep 2020||8th Sep 2020|
|NSE Code||Gold Bond Name||Issue Date||Base Price||Retail Discount||Interest||Redemption||Performance Report|
|SGBJUL28||Sovereign Gold Bonds 2020-21-Series-IV||14-Jul-2020||₹4852||₹50||2.50% PA||Jul-28||.|
|SGBJUN28||Sovereign Gold Bonds 2020-21-Series-III||16-Jun-2020||₹4677||₹50||2.50% PA||Jun-28||Report|
|SGBMAY28||Sovereign Gold Bonds 2020-21-Series-II||19-May-2020||₹4590||₹50||2.50% PA||May-28||Report|
|SGBAPR28I||Sovereign Gold Bonds 2020-21-Series-I||28-Apr-2020||₹4639||₹50||2.50% PA||Apr-28||Report|
|SGBMAR28X||Sovereign Gold Bonds 2019-20-Series-X||11-Mar-2020||₹4260||₹50||2.50% PA||Mar-28||Report|
|SGBFEB28IX||Sovereign Gold Bonds 2019-20-Series-IX||11-Feb-2020||₹4070||₹50||2.50% PA||Feb-28||Report|
|SGBJ28VIII||Sovereign Gold Bonds 2019-20-Series-VIII||21-Jan-2020||₹4016||₹50||2.50% PA||Jan-28||Report|
|SGBDC27VII||Sovereign Gold Bonds 2019-20-Series-VII||10-Dec-2019||₹3795||₹50||2.50% PA||Dec-27||Report|
|SGBOCT27VI||Sovereign Gold Bonds 2019-20-Series-VI||30-Oct-2019||₹3835||₹50||2.50% PA||Oct-27||Report|
|SGBOCT27||Sovereign Gold Bonds 2019-20-Series-V||15-Oct-2019||₹3788||₹50||2.50% PA||Oct-27||Report|
|SGBSEP27||Sovereign Gold Bonds 2019-20-Series-IV||17-Sep-2019||₹3890||₹50||2.50% PA||Sep-27||Report|
|SGBAUG27||Sovereign Gold Bonds 2019-20-Series-III||14-Aug-2019||₹3499||₹50||2.50% PA||Aug-27||Report|
|SGBJUL27||Sovereign Gold Bonds 2019-20-Series-II||16-Jul-2019||₹3443||₹50||2.50% PA||Jul-27||Report|
|SGBJUN27||Sovereign Gold Bonds 2019-20-Series-I||11-Jun-2019||₹3196||₹50||2.50% PA||Jun-27||Report|
|SGBFEB27||Sovereign Gold Bonds 2018-19-Series-VI||12-Feb-2019||₹3326||₹50||2.50% PA||Feb-27||Report|
|SGBJAN27||Sovereign Gold Bonds 2018-19-Series-V||22-Jan-2019||₹3214||₹50||2.50% PA||Jan-27||Report|
|SGBDEC26||Sovereign Gold Bonds 2018-19-Series-IV||01-Jan-2019||₹3119||₹50||2.50% PA||Jan-27||Report|
|SGBNOV26||Sovereign Gold Bonds 2018-19-Series-III||13-Nov-2018||₹3183||₹50||2.50% PA||Nov-26||Report|
|SGBOCT26||Sovereign Gold Bonds 2018-19-Series-II||23-Oct-2018||₹3146||₹50||2.50% PA||Oct-26||Report|
|SGBMAY26||Sovereign Gold Bonds 2018-19-Series-I||04-May-2018||₹3114||₹50||2.50% PA||May-26||Report|
|SGBJAN26||Sovereign Gold Bonds 2017-18-Series-XIV||01-Jan-2018||₹2881||₹50||2.50% PA||Jan-26||Report|
|SGBDEC2513||Sovereign Gold Bonds 2017-18-Series-XIII||26-Dec-2017||₹2866||₹50||2.50% PA||Dec-25||Report|
|SGBDEC2512||Sovereign Gold Bonds 2017-18-Series-XII||18-Dec-2017||₹2890||₹50||2.50% PA||Dec-25||Report|
|SGBDEC25XI||Sovereign Gold Bonds 2017-18-Series-XI||11-Dec-2017||₹2952||₹50||2.50% PA||Dec-25||Report|
|SGBDEC25||Sovereign Gold Bonds 2017-18-Series-X||04-Dec-2017||₹2961||₹50||2.50% PA||Dec-25||Report|
|SGBNOV25IX||Sovereign Gold Bonds 2017-18-Series-IX||27-Nov-2017||₹2964||₹50||2.50% PA||Nov-25||Report|
|SGBNOV258||Sovereign Gold Bonds 2017-18-Series-VIII||20-Nov-2017||₹2961||₹50||2.50% PA||Nov-25||Report|
|SGBNOV25||Sovereign Gold Bonds 2017-18-Series-VII||13-Nov-2017||₹2934||₹50||2.50% PA||Nov-25||Report|
|SGBNOV25VI||Sovereign Gold Bonds 2017-18-Series-VI||06-Nov-2017||₹2945||₹50||2.50% PA||Nov-25||Report|
|SGBOCT25V||Sovereign Gold Bonds 2017-18-Series-V||30-Oct-2017||₹2971||₹50||2.50% PA||Oct-25||Report|
|SGBOCT25IV||Sovereign Gold Bonds 2017-18-Series-IV||23-Oct-2017||₹2987||₹50||2.50% PA||Oct-25||Report|
|SGBOCT25||Sovereign Gold Bonds 2017-18-Series-III||16-Oct-2017||₹2956||₹50||2.50% PA||Oct-25||Report|
|SGBJUL25||Sovereign Gold Bonds 2017-18-Series-II||28-Jul-2017||₹2830||₹50||2.50% PA||Jul-25||Report|
|SGBMAY25||Sovereign Gold Bonds 2017-18-Series-I||12-May-2017||₹2951||₹50||2.50% PA||May-25||Report|
|SGBMAR25||Sovereign Gold Bonds-2016-17-Series-IV||17-Mar-2017||₹2943||₹50||2.50% PA||Mar-25||Report|
|SGBNOV24||Sovereign Gold Bonds-2016-17-Series-III||17-Nov-2016||₹3007||₹50||2.50% PA||Nov-24||Report|
|SGBSEP24||Sovereign Gold Bonds-2016-17-Series-II||23-Sep-2016||₹3150||₹0||2.75% PA||Sep-24||Report|
|SGBAUG24||Sovereign Gold Bonds-2016-17-Series-I||05-Aug-2016||₹3119||₹0||2.75% PA||Aug-24||Report|
|SGBMAR24||Sovereign Gold Bonds-2016-Series-II||29-Mar-2016||₹2916||₹0||2.75% PA||Mar-24||Report|
|SGBFEB24||Sovereign Gold Bonds-2016-Series-I||08-Feb-2016||₹2600||₹0||2.75% PA||Feb-24||Report|
|SGBNOV23||Sovereign Gold Bonds-2015-Series-I||26-Nov-2015||₹2684||₹0||2.75% PA||Nov-23||Report|
Last updated on 7th Jul 2020
Investors are going to get 2.50% per annum (Fixed rate) interest on the initial investment. Interest will credited semi-annually to the bank account of the investor. The last interest will be payable on maturity along with the principal. In such case if you are planning to buy physical gold for investment, this bond is giving same advantage + extra interest of 2.50% PA. As well as you can use this bound for collateral for loans.
In this section we have included complete comparison guide in table format for gold investment. With this we can conclude buying SGB is the best investment options compare to gold ETF and physical gold as you get all the advantages from both the options + additional 2.5% interest income on your investment. You can use SGB for Collateral against Loan also.
|Points||Physical Gold||Gold ETF||Sovereign Gold Bond|
|Returns||Lower than actual return on gold||Lower than actual return on gold||Higher than actual return on gold|
|Extra Returns||No||No||Interest of 2.5% on the initial investment|
|Safety||Risk of handling physical gold||High||High|
|Maximum Quantity||No Limit||No Limit||4 kg for individual, 4 kg for HUF, and 20 kg for trusts and similar entities per fiscal (April-March).|
|Purity of Gold||Purity of Gold always remains a question||High as it is in Electronic Form||High as it is in Electronic Form|
|Capital Gain||Long term capital gain applicable after 3 years||Long term capital gain applicable after 3 years||Long term capital gain applicable after 3 years. ( No Capital gain tax if held till maturity )|
|Collateral against Loan||Yes||No||Yes|
|Tradability / Exit Route||Conditional||Tradable on Exchange||Tradable on Exchange. Redemption- 5th year onwards with GoI|
|Storage Cost||High||Very Low||Very Low|
Investors can buy/apply for the bond through SEBI authorized trading members and financial advisors of NSE, BSE. The RBI also appointed scheduled commercial banks and designated post offices. NBFCs, National Saving Certificate (NSC) agents and others can act as agents. They would authorized to collect the application form and submit in banks and post offices. Application forms will be provided by trading members, authorized agents and can also be downloaded from RBI's website.
The Bonds are issued by the Reserve Bank of India on behalf of the Government of India. The bonds are distributed through banks and designated post offices, NSE and BSE. This should make subscribing to the bonds an easy affair. During redemption, "the price of gold may be taken from the reference rate, as decided, and the Rupee equivalent amount may be converted at the RBI Reference rate on issue and redemption".
Yes, there may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold that he has paid for. Investor are going to get 2.50% interest PA on investment, which is apart from gold price movement.
Minimum 1 gram and maximum 4KG per person per fiscal year (April - March). From Oct 2017, you can subscribe 4 KG for individual, 4 Kg for HUF per fiscal year. This 4 KG includes both initial issuance of Government and those purchased from the Secondary Market.
The investor will advise one month before maturity on the ensuing maturity of the bond. On the date of maturity, the maturity proceeds will credit to the bank account as per the details on record. In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/PO promptly.
Yes, these securities are eligible to use as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to value ratio will be the same as applicable to ordinary gold loan mandated by the RBI from time to time.
Payment can made through cash/cheques/demand draft/electronic fund transfer.
Yes, partial holdings can be redeemed in multiples of one gram.
No, As Sovereign Gold Bonds (SGB) is Gov Securities and has a fixed maturity date. So on the date of maturity, it will auto redeem and funds will be transferred in your bank account. You can invest in similar bonds to continue your investment once you get funds in your bank account.