We know that in general, Indians are obsessed with gold. Events in India like weddings, ear piercings, and birthdays are incomplete without gold. So, when they have liquid cash, they often prioritize buying gold.
If you ask whether the gold that Indians are buying and hoarding is safe and can be sold at the purchase price, then the answer is "no." Therefore, RBI's "gold bond" is a good option for those who "have money, want to buy gold, but should avoid losses" and also want safety. Now is the ideal time for you to invest in it.
The fourth series of gold bonds for the financial year 2023-24 will be issued today (Monday, February 12) and will be sold until February 16, 2024. Bonds for people paying within these five days will be allotted on February 21, 2024. This gold bond is selling at Rs. 6,263 per gram.
Who can buy?
These gold bonds can be purchased by individuals, HUFs, trusts, universities, charitable institutions, etc.
Gold bonds can be purchased from banks, Stock Holding Corporation of India Limited, post offices, stock exchanges, and online. A discount of Rs. 50 per gram is given to online buyers.
One can buy gold bonds up to 4,000 grams or 4 kg. Organizations such as trusts can purchase gold bonds up to 20 kg in a financial year.
Generally, the maturity period of gold bonds is 8 years, however, there is a possibility to leave after 5 years as per requirement. So you can sell gold bonds after 5 years of investment. If you hold the gold bond till maturity, you will get cash at the same price as 24-karat gold during the maturity period. In addition, the investment amount earns 2.5% interest per annum. This interest amount is credited to the bank account every six months.
The price of gold bonds is fixed on the basis of the last 3 days' average price of 999 pure gold fixed by IBJA.
To buy gold bond, up to Rs. 20,000 should be paid in cash and above through bank draft digital mode.
Investors are notified one month before the maturity of the investment. If there are any changes in the previously provided bank account number, email address, etc., the relevant bank, post office, etc., should be informed.