The Reserve Bank of India on behalf of the government has come out with the second tranche of Sovereign Gold Bonds. The issue will remain open till January 22 and bonds will be issued on February 8.
The issue price set for this tranche is Rs 2,600 per gram. The issue price of these bonds is calculated by averaging the previous week’s closing price of gold of 999 purity. The first issue was priced at Rs 2,684 per unit.
Investors will get additional interest at the rate of 2.75 per cent per annum on the initial deposited amount. Investors will continue to have full exposure to gold prices to the extent of amount deposited.
Experts suggest that Sovereign Gold Bonds scheme score over physical gold as well as exchange traded funds (ETFs) in terms of capital appreciation and interest rates.
Elaborating on how the Sovereign Gold Bonds are better than physical gold, Vidya Bala, head of mutual fund research at Fundsindia.com said “Sovereign Gold Bonds are far superior than physical gold in terms of capital appreciation and fixed income. Also holding cost is nil in the case of Sovereign Gold Bonds compared with the physical gold which people prefer to keep in lockers for safety measures.”
