SGB 2023-24 Series IV Issue Date Arriving Soon: Get Discounted Price, Check How To Apply Below

Sovereign Gold Bonds (SGB) are one of the safest and risk-free methods of hedging against inflation. The investments in SGB are increasing rapidly as the news reports suggest that in December 2023, some 12.1 tonnes of gold bonds were purchased by Indians, with Mumbai being the highest procurer. In January 2024, 134.2 tonnes of gold was sold by the government under SGBs since the launch of virtual gold sales began in 2016. The increased sales of gold bonds are beneficial for the country as the same amount of gold might get imported, increasing India's trade deficit. However, India Gold Bonds investments are the simplest method for investing in gold today with minimal risk. The interest assurance can yield above 10% accumulated interest returns until the SGB maturity of eight years.

As per recent new updates in the interim budget held early this month, the government of India plans to sell 40 to 45 tonnes of virtual gold bonds by the Financial year 2025. The current financial year revised estimates for SGB liabilities were Rs. 69,998, while this year the government increased the target by Rs. 26,138 crores, aiming at almost Rs. 96,136 crores by March 2025. The interest payments towards the gold bonds in India are anticipated to increase up to Rs. 2,000 crore this year, from Rs. 1,225 crore in the current financial year. RBI's assurance of 2.5% annual interest payment, the returns from the surging price, and capital tax exemption make it one of the best asset classes for an investment portfolio.

In the past two years, both physical and virtual gold have proven to be risk-free reward investments. The consistent surge in gold prices in the period was driven primarily by the international demand for precious metals increasing due to uncertain geopolitical situations around the globe. The Russia-Ukraine war in February 2023 and the Israel-Palestine conflict in the Middle East by the beginning of October 2023 witnessed an exponential hike in domestic and international gold demand. The increasing tensions between the major economies and US elections are expected, to point out slightly uncertain conditions ahead internationally, ensuring the demand for gold during times of crisis and agitation remains uplifted as historically noted. Overall, it seems investors would stay optimistic with the dollar-backed US spot gold prices ahead, having a directional push for domestic gold prices in India as well.

How to apply for Sovereign Gold Bonds 2023-24 Series IV Online?

There are multiple ways to apply for SGB 2024 Series IV today as it is allowed for virtual trading with multiple registered brokers of the country. India Gold bonds today can be held in demat accounts, which means after the launch of the gold bond series, investors with a broker account can purchase SGB through the exchange at the market price. The investor can also register with the RBI and apply through the official website for allotment. Once the application is accepted, investors are allocated the desired gold bonds at a Rs. 50/- discount from the market price.

Apart from this, buyers can also apply for SGB online through the official website and mobile applications of scheduled commercial and public sector banks of India. The Gold Bond Series IV 2023-24 subscription date is notified as 12th February 2024, and the issuance date for SGB Series IV 2024 is declared as 21st February 2024. The SGB 2023-24 Series IV issue price is Rs. 6,263/- per gram or bond. The 2023-24 gold bond Series IV issue price is Rs. 6,213/- per bond for direct online payments. The payment for SGB 2024 Series IV is accepted digitally and a discount of Rs. 50/- per gram is gained by investors applying online. The nominal value of the bonds would float according to the physical gold prices, expected to witness volatile movements this year as well.