What is Sovereign Gold Scheme and is it good to invest in it?

    Like property, investing in gold is also considered a better option. Sovereign Gold Bond scheme can be interesting if you want gold at cheap rate. The ninth installment of Sovereign Gold Scheme 2021-22 has started from Monday (January 10), which will remain open till January 14. Gold is available here at less than market price. Let us know what is Sovereign Gold and whether it is right to invest in it or not.

    What is Sovereign Gold Bond Scheme?

    The government had launched the Sovereign Gold Bond Scheme in the year 2015. In this scheme, the central bank evaluates the price per gram of gold. In this, instead of physical gold, investments are made in gold bonds.

    What is the minimum and maximum limit to invest?

    You can also invest on one gram of gold in the Sovereign Gold scheme. An individual or his family can invest in a maximum of four kilograms of gold during a financial year. Whereas trusts, universities and charitable institutions can invest up to 20 kg. The Reserve Bank of India (RBI) has fixed the price of sovereign gold bonds at Rs 4,786 per gram. At the same time, a discount of Rs 50 is also being given on buying gold online.

    How much interest will be received and when will the maturity take place?

    The Gold Bond scheme earns an interest rate of 2.5 per cent per annum, which is paid every six months. In this, interest is also earned on buying one gram of gold. The maturity of the Gold Bond scheme has been fixed for up to eight years. You cannot sell it before five years, as its lock-in period is only five years. After this there is also an option to terminate the bond.

    Will it be profitable to invest or not?

    According to experts, investing in  Gold Bond Scheme is fine, as it is a better option to make a safe investment in gold. At the beginning of the Corona epidemic, the rate of gold had become the highest in history, but now it is running in a limited range. It may be a good idea to invest in this scheme before the Omicron transition could lead to a further rise in gold prices in the times to come.

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