Sovereign Gold Bonds: Should You Subscribe?


The Sovereign Gold Bond 2022-23 (Series II), that opens for subscription from Aug. 22-26, 2022, comes at a crucial time for investors.

Uncertainty about high inflation, weakening rupee and global geopolitical concerns require a clear focus on the role of gold in the portfolio. The bonds will be available at a price of Rs 5,197 per gram and the duration of the investment is eight years with an exit option available after the fifth year on the dates of the interest payment of the bond.

Is There Any Extra Earnings Opportunity?

An investor who is looking to take an exposure to gold gets an additional return when they choose the sovereign gold bond as compared to the other investment options in gold.

On one hand, the bond gives the benefit of appreciation in the price of gold but at the same time there is an extra return available. This is in the form of 2.5% interest that is paid out on the bonds each year. This interest is over and above the price appreciation so it makes the bonds attractive in terms of taking an exposure to gold.

Another form of extra earning for the investor is if they invest online and through a digital mode then they get another Rs 50 off per gm, so their cost price in the issue becomes Rs 5,147 per gm.


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