SGB 2022-23 Series II Subscription Period To End Soon: Should You Invest?

SGB or Sovereign Gold Bond 2022-23 Series II is open for subscription currently and the offer period shall end tomorrow i.e. August 26, 2022. Here are all the associated benefits of the instrument together with whether or not you should consider subscribing to the current SGB tranche.

Let us begin the topic with understanding the basics about Sovereign Gold Bonds:

Sovereign Gold Bonds in simple terms are government issued securities with denominations in grams of gold. In fact to encourage and channelize household savings into physical gold, the centre in 2015 launched the scheme. For SGBs you need to pay in cash (the issue price) and redeem the instrument on maturity in cash. Notably, there is attached a lock-in term with the instrument which is of 8 years. But pre-mature exit is available in the 5th, 6th and 7th year, to be exercised on the interest payment dates.

Issue price of the currently running SGB 2022-23 Series II: Based on the average of the previous three business days' closing prices, the issue price for the current SGB has been provided as Rs. 5197 per gm. Online investors in the SGB can get a rebate of Rs. 50 i.e. for them 1 SGB unit shall cost Rs. 5147 per gm.

Current gold rates in the retail market After inching to almost one-month low levels mirroring international trend, gold rates are seen climbing. In Delhi 24 carat gold today i.e. August 25 is priced at Rs. 51,980, while prices in Mumbai are at Rs. 51,820 per 10 gm

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