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. In this section we have included complete comparison guide in table format for gold investment. Traded on Exchange, older version of bonds is available in exchange for trade.Ĭomparison of buying Physical gold, Gold ETF and Sovereign Gold Bond for investment.RBI will announce the price before the issue date which will be fixed at the previous week's simple average of the closing price of gold of 999 purity (24 carat) published by IBJA.Capital Gains Tax (as per Government of India guidelines).The bonds will carry a sovereign guarantee both on the capital invested and the interest.The tenor of the bond is for a minimum of 8 years with the option to exit in 5th, 6th and 7th years.Can be bought from BSE, NSE, Post office or bank.The Bond is available in demat and paper form.The Bond is by RBI, held on the books of the RBI or in demat form, eliminating risk of loss of scrip etc.Saving on making charges in case of Jewellery.Maximum investment: 4KG grams for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year. Risks and costs of storage are eliminated.Sovereign Gold Bonds Scheme History NSE Code When you purchase physical gold, you will get only price appreciation, not the annual interest.įrom the year 2018, the maximum investment limit per financial year has increased from 500 gm to 4KG for individuals and HUF. Sovereign Gold Bond is the " Best Gold Investment in India" because you will get the price appreciation benefit as well as 2.5% interest on your investment. Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on NSE/BSE at current prices. They are also available to buy and sell on NSE/BSE at the current price like any other security. Investors can buy these bonds through NSE/BSE at the issue price. The Bonds are issued by Reserve Bank on behalf of the Government of India. Investors have to pay the issue price in cash, and the bonds will redeem in cash at maturity. They are substitutes for holding physical gold. Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold.
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