The central bank of the country is giving gold investors a chance to become rich. Today i.e. on August 11, country gold investors can get 147 percent returns. In fact, RBI has given investors a chance to redeem two installments of Sovereign Gold Bonds ahead of time. According to RBI circular, investors can redeem 2019-20 Series IX (released in February 2020) and 2020-21 Series V (released in August 2020) today i.e. on August 11 at the rate of Rs 10,070 per gram.
Due to which investors will get a tremendous return of 147 percent on their investment. The redemption price of Sovereign Gold Bond is determined by the redemption date based on the simple average of the 999 purity of gold fixed by the India Bullion and Jewelers Association Limited (IBJA) for the last three days. The duration of these gold bonds is eight years, but the investors have the option of premature ridging after the fifth year from the date of release;
How much return will be received on SGB 2019-20 Series-IX
Sovereign Gold Bond 2019-20 (Series IX) opened for subscription from 3 February to 7 February 2020. During the subscription period, the issue price of SGB was fixed at 4,070 per gram. Therefore, at the existing redemption price, investors can get a return of up to 147 per cent.
How much return on SGB 2020-21 Series-V
Sovereign Gold Bonds 2020-21 (Series v) opened to bid from August 3 to August 7, 2020. The issue price of bonds during the subscription period was Rs 5,334, resulting in 89 percent return on investment. Gold prices have increased rapidly over the years, affected by the global uncertainty generated by the epidemic, Russia-Ukraine War, weak US dollar and now the tariffs imposed by US President Donald Trump.
What are Sovereign Gold Bonds?
Sovereign Gold Bonds are securities supported by the government, which are associated with the price of gold. These bonds are issued by the Reserve Bank of India by the Government of India. Sovereign Gold Bonds give you a fixed interest of 2.50 percent per year on your initial investment. This interest is deposited in your bank account twice a year, and the final interest comes with the original amount on the maturity of the payment bond.
If you want to withdraw bonds before maturity, then you have to contact your bank, SHCIL office, post office or agent at least 30 days before the next interest payment date. This request should be made at least one day before the interest payment date. After the approval, according to the details available on the RBI website, the funds will be transferred to your bank account given during the application.