Do you have a sovereign gold bond and if you are planning to sell it ahead of time, then this news can be of your use. Those who have a sovereign gold bond, the question comes to their mind that can they sell Sovereign Gold Bonds ahead of time?
In October 2019, if you have bought the Sovereign Gold Bond (SGB) 2019-20 Series V, then you are planning to sell it before time i.e. before the completion of 8 years, then you can also do so. The facility of selling the bond of this series before 15 April 2025 is available. For this, the government has fixed the redemption price of Rs 9,069 per gram for this.
Return up to 139 percent
Now just think that you have bought this bond at Rs 3,788 per gram and now its rate is Rs 9,069 per gram. That is, in 5.5 years you are getting up to 139 percent returns. Let me tell you that this calculation is based on only gold price. It does not include up to 2.5 percent interest available every year.
What is the rule of selling bonds
The total time of SGB is 8 years, but after 5 years you can sell them ahead of time. The government has provided this facility so that investors can also make profit if needed. At the same time, in the last three business days, 999 percent purity is fixed on the average price of gold with purity. Which is released by India Bullion and Jewelers Association.
What will be the benefit of interest
If you do not sell this bond now and keep it till Mayority, then every year you will also get up to 2.5 percent interest. This interest comes to your bank account every month. This means that Sovereign Gold Bond provides profit not only if the price of gold increases, but also according to interest.
Can Sovereign now invest in gold bonds?
Last year, the government did not release any new series of Sovereign Gold Bond. But the old bonds which are already in the market, their purchase and sale will continue as before. This means that if you have invested earlier, then you can take advantage of this entire facility comfortably.