The second tranche of Sovereign Gold Bonds (SGB) 2017-18, issued by the Reserve Bank of India on behalf of Government of India, is currently open for subscription. The applications for the scheme will be accepted between 10 and 14 July 2017. The SGB scheme was introduced in 2015, as an alternative to investing in physical gold. Let’s understand why it is the best option.
What’s on offer
The minimum investment requirement is 1 gram and you can invest up to 500 grams per financial year. So, if you have invested in the first tranche for FY18, factor that in while investing this time. The nominal value of the bond would be based on the simple average closing price—published by the India Bullion and Jewellers Association Ltd (IBJA) for gold of 999 purity—in the week preceding the subscription period. The final issue price shall be Rs50 per gram less than the nominal value.
