Sovereign gold bond issue available at ₹2000 discount. Should you subscribe? – Mint

Home / Money / Personal Finance /  Sovereign gold bond issue available at 2000 discount. Should you subscribe?

Sovereign Gold Bond Scheme: Amid Russia-Ukraine war, latest issue of sovereign gold bond opened for subscription on 28th February 2022 and it will remain open for subscription till 4th March 2022. As escalating Ukraine-Russia tension has helped gold price to surge up to its 18-month high in domestic market. However, the yellow metal witnessed heavy profit-booking there and came down within 48 hours. But, analysts are still bullish on the precious bullion metal. Currently, retail gold price in India is around 53,000 per 10 gm, which is around 2000 higher from the sovereign gold bond issue price of 51,090 per 10 gm. In fact, for those who are applying online and paying through digital gateways, they will have to pay only 50,590 per 10 gm as there is 50 per gm rebate being given to the online subscribers paying digitally. So, sovereign gold bond is available at lucrative discount of 2000 to 2400 and there is still one more day left for bidding. 

According to commodity market experts, one should subscribe to this Government of India (GoI) offer. They said that one should not miss this golden opportunity and subscribe to sovereign gold bond.

Advising investors to subscribe to the Series X of Sovereign Gold Bond Scheme 2021-22; Anuj Gupta, Vice President at IIFL Securities said, “MCX gold price today is around 51,700 per 10 gm. If we add landing price of 1500 per 10 gm in it, then the retail price anywhere in Indian would fall around 53,200 per 10 gm. So, Sovereign gold bond price of 51,060 per 10 gm is available at a discounted price of near 2,000 for offline subscribers whereas for an online subscriber paying issue price digitally, it is available at a discount of 2500 per 10 gm. So, one should not miss this chance and must subscribe to this golden opportunity being offered by the GoI via Reserve Bank of India (RBI).”

Anuj Gupta of IIFL Securities said that even when the sovereign gold bond had been at par with the retail gold price, he would have suggested ‘subscribe’ to this GoI offer as it is for long-term time horizon. He said that in last 5 years, gold price has surged near 70 per cent and hence, there is no harm in applying to this long-term gold investment scheme.

Expecting stellar return for long-term gold investors; Pankaj Mathpal, MD & CEO at Optima Money Managers said, “It’s very good time to invest in sovereign gold bond scheme as the yellow metal is expected to give around 10-12 per cent return in next few years. So, investing in gold for 5 years or more at such a lucrative discount should not be missed and one must apply for the latest tranche of Sovereign Gold Bond Scheme.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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