Sovereign Gold Bond scheme 2021-22: Series 9 opens at present. Should you subscribe?

Sovereign Gold Bond (SGB) scheme 2021-22: Five day subscription of the ninth collection of SGB 2022 is opening at present. The subscription will stay open for bidders until 14th January 2022. The Reserve Bank of India (RBI) knowledgeable in an announcement that SGB value has been mounted at ₹4,786 per gram, ₹5 per gm decrease from its earlier tranche. Online subscribers can be given ₹50 per gm rest as difficulty value for these bidders who pay digitally whereas making use of has been mounted at ₹4736 per gm.

Here we checklist out necessary particulars in regard to Sovereign Gold Bond scheme 2021-22 collection 9:

– Subscription date: Subscription for the ninth tranche of Sovereign Gold Bond scheme 2021-22 opens at present and it’ll stay open for bidding until 14th January 2022.

– Issue value: As talked about above, difficulty value of the Sovereign Gold Bond scheme 2021-22 collection 9 has been mounted at ₹4786 per gm.

– Discount for on-line subscribers: The Government of India (GoI), in session with the RBI, has determined to supply a reduction of ₹50 per gram to these buyers making use of on-line and the fee towards the appliance is made by means of digital mode.

“For such (online or digital) investors, the issue price of gold bond will be ₹4,736 per gram of gold,” the RBI stated.

– Investment restrict: Minimum permissible funding allowed in Sovereign Gold Bond scheme is one gram of gold. The most restrict of subscription is 4 kg for particular person, 4 kg for HUF and 20 kg for trusts and comparable entities per fiscal (April-March).

– KYC eligibility: The know-your-customer (KYC) norms would be the identical as that for buy of bodily gold.

– Where to use: Sovereign Gold Bond scheme 2021-22, collection 9 can be offered by means of banks Stock Holding Corporation of India Limited (SHCIL), designated submit workplaces and recognised inventory exchanges — NSE and BSE.

– Subscribe or not: Whether one ought to apply for the Sovereign Gold Bond scheme 2021-22 collection 9; Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities stated, “Compared to current MCX gold rate, the issue price seems on the higher side by around ₹30 to ₹35 per gm. As outlook for gold for next fortnight is sideways with negative bias, we are expecting further correction in gold price and MCX gold price may come below ₹47,000 as US Fed has announced that interest rate hike can be announced sooner than expected. So, by the end of subscription date of this series, there can be further correction taking place in gold price and hence my suggestion to investors is to wait for next series as the current series may turn out dearer by near ₹50 per gm by the end of its subscription on 14th January 2022.”

Echoing with Anuj Gupta’s views; Nish Bhatt, Founder & CEO at Millwood Kane International – an Investment consulting agency stated, “Currently, gold prices are trading near a 2-month low. Gold prices are almost ₹9000 per 10 gm down from their peak witnessed in 2020. The weakness is mainly due to the minutes of the US Fed that indicated a faster rate hike and also a reduction in bond buying than earlier estimated. Going forward, the pace at which the global central banks will unwind their monetary position, movement of the US dollar will guide gold prices in the year 2022.”

Disclaimer: The views and suggestions made above are these of particular person analysts or broking corporations, and never of Mint.

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