Sovereign Gold Bonds Last Tranche For Current Fiscal To Open Soon

Sovereign gold bond tranche X as per RBI schedule dated October 22, 2021 will open between February 28 to March 4, 2022, while its date of issuance has been fixed at February 8, 2022.

Also, the issue price for the same has been fixed at Rs. 5109 per 10 gm. In the retail market though, 24K gold of 1 gm is priced at Rs. 5110. Suggesting that the SGB is priced at par with the market price.

In the views of Mr. Nish Bhatt, Founder & CEO, Millwood Kane International - an Investment consulting firm." The price for the Sovereign Gold Bond tranche-10 has been fixed at 5109/gm. Moving investment from physical gold to digital/paper gold has been a big success for the government via the SGB, wherein it has raised over Rs 32,000 crores since its inception in 2015. Investing in paper gold (SGBs) is a better and less hectic option as there is no storage cost, making charges in the case of gold jewelry.

Gold prices have rallied to more than a year high due to the geopolitical tensions. Historically, gold has attracted investment in times of uncertainty due to its safe-haven nature. The situation in Ukraine has also led to a spike in crude prices. A rally in oil prices put pressure on the INR, thereby making gold more costly. Currently, gold is supported by international as well as local developments.

As per RBI's Frequent Q&As 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 be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

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