Tuesday , January 22 2019
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Bond with the Gold

Hello Gruhinis

Sovereign Gold Bonds are available once again for purchase.

From January 18, you can purchase these bonds at your bank or post offices. The price of gold is being fixed at Rs 2600 per gram

Here are the details of Sovereign Gold Bond, Tranche-II

Available From: January 18- January 22

Available At : All banks and post offices. Banks can accept online applications also

Minimum and Maximum Quantity: Min: 2gm (Rs 5200 as price fixed is Rs 2600 per gram), Max: 500 gm (Rs 13 lakh)

Documents Needed for Investment: Your PAN card, Identity proof,

Should you consider these Bonds?

Let me answer your concerns first

Are they Safe?

Yes, these bonds are absolutely safe as they are issued by Government of India and monitored by Reserve Bank of India.

How do you earn money? Is it possible to lose money?

During the 8-year tenure of the bond, you earn 2.75% annual interest, to be paid semi-annually. So you earn interest.

Whether you make or lose money also depends on the gold prices. These bonds will mature after 8 years and the maturity value will be based on the gold prices at that time. So if prices go up to Rs 3000 per gram, you will get more bucks for your investment.  So you earn interest as well price appreciation if it happens during this tenure.

Alternatively, you can exit by selling these bonds  from 5th, 6th, 7th year on stock exchange. The price you get will depend on how actively these bonds are traded on the exchange.

Gruhini Recommends: 

These bonds are just another way to invest in gold.  Instead of holding or storing physical gold coins or biscuits, you can buy these bonds which are valued on the basis of prevailing gold prices.

> Let not any dealer or agent fool you as there is no exchange of physical gold in this scheme.

>Gift bonds to your daughter or grand daughter: These bonds can be transferred by filling a transfer form. Also if your minor kids are KYC compliant, they can possibly invest in these bonds too.

>Your Great Gruhini believes in buying gold jewellery that’s wearable and is not just for keeping it in locker. For investment purpose, I invest in gold exchange traded funds (Gold ETF) and will consider sovereign gold bonds too.

About Rachna Monga Koppikar

Rachna aka your Great Gruhini is a finance writer with over a decade's experience in writing about personal finance matters with leading financial publications of India. As she studies to be a certified financial planner, she is also on a mission to make every woman a money savvy individual. So shed your inhibitions. Get over your money worries with The Great Gruhini. Write to her at thegreatgruhini@gmail.com

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