SOVEREIGN GOLD BONDS - PowerPoint PPT Presentation

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SOVEREIGN GOLD BONDS

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These government bonds are denominated in grams of gold, and the investor can invest in them as a replacement for keeping physical gold. Sovereign gold bonds are issued at their face value and redeemed when they expire in cash. – PowerPoint PPT presentation

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Title: SOVEREIGN GOLD BONDS


1
Sovereign Gold Bonds
2
About Us
  • Is Sovereign gold bonds
  • right investment option for you
  • The Indian Government launched the Sovereign
    gold bond scheme in November 2015 through the
    Reserve Bank of India as a part of the Gold
    Monetisation Scheme for the investors. These
    government bonds are denominated in grams of
    gold, and the investor can invest in them as a
    replacement for keeping physical gold. Sovereign
    gold bonds are issued at their face value and
    redeemed when they expire in cash.
  • Characteristics of Sovereign Gold Bonds
  • These bonds are issued by the RBI, on behalf of
    the Indian Government. 
  • They are denominated in grams of gold, starting
    with 1 gram.

3
  •  option to exit from the bonds in the 5th, 6th,
    and 7th years. 
  •  An individual investor and the Hindu United
    Families can subscribe for up to 4 kgs of gold
    respectively, and trusts and such entities can
    subscribe for up to 20 kgs of gold to invest in
    sovereign gold bonds.
  •  The issuing price of the sovereign gold bond is
    calculated from the simple average of the closing
    price of the last three working days for the 999
    purity gold in the week before the subscription
    period. 
  •  These bonds are tradable on the stock market
    within a fortnight of their issuance.
  •  The KYC norms for sovereign gold bonds are the
    same as the KYC required for buying physical
    gold. These documents involve the usual ID proof,
    Address proof, and most importantly, the buyers
    PAN number.

4
  • Advantages of investing
  • in Sovereign Gold Bonds in India 
  • The capital appreciation of these bonds is
    directly linked to the gold prices. Investors get
    profited from the increase in gold prices without
    having to invest in physical gold.
  • Sovereign Gold Bonds offer an additional interest
    of 2.50 per annum, usually payable
    semi-annually. 
  • Unlike physical gold, you need not worry about
    the risk of getting stolen or lost, thus
    eliminating the cost of storing them in lockers,
    etc., like physical gold.
  • Sovereign gold bonds are free from additional
    costs like making charges and impurities that are
    a part of physical gold. 
  • If the investor holds these bonds till maturity,
    these bonds are exempted from the capital gain
    tax. 

5
  • You can use sovereign gold bonds as collateral
    for loans as well and the loan-to-value (LTV)
    ratio is the same as the ordinary gold loan.
  • A Final Word
  • Buying sovereign gold bonds is a convenient way
    of buying gold, without having to deal with the
    expenses and risks involved in keeping physical
    gold. Also, you can buy these bonds with as
    little as 1 gram of gold value, making them
    pocket-friendly for investors who do not have a
    huge investment budget. 
  • In case you are wondering where you can buy
    sovereign gold bonds, the most convenient and
    quick method of buying sovereign gold bonds is
    buying them online. To buy sovereign gold bonds
    online, you can visit trusted online bond
    platforms like BondsIndia, which offer you all
    the updated information regarding various kinds
    of bonds and offer you detailed analysis on them,
    to help you make informed decisions. To get a
    deeper knowledge about Sovereign gold bonds and
    invest in them.
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