Series 9 kicks off today. Check out the price band details here, everything you need to know here

Under this arrangement, the RBI issues the bonds on behalf of the GOI. The bonds are sold through banks, Stock Holding Corporation of India (SHCIL), designated post offices and recognized exchanges – National Stock Exchange of India (NSE) and BSE.

The Government of India in consultation with the central bank has decided to offer a discount of Rs 50 per gram on the face value to investors who apply online and the payment is made against their application through digital mode.

“For such investors, the issue price of gold bonds will be Rs 4,736 per gram of gold,” the RBI said in a statement on Friday.

The issue price for Series VIII, which was available for subscription from November 3 to December 29 last year, was Rs 4,791 per gram.

The price of the bond is determined in Indian rupees based on a simple average of the closing price of 999 purity gold published by the India Bullion and Jewelers Association (IBJA) for the last three business days of the week prior to subscription period of time.

The bonds are expressed in multiples of gram(s) of gold with a base unit of one gram. The term of the bond is for a period of eight years with an option to exit after the fifth year, which must be exercised on the following interest payment dates.

The minimum investment allowed is one gram of gold and the maximum subscription limit is 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year (April-March).

The government gold bond system was launched in November 2015 with the aim of reducing the demand for physical gold and converting some of the domestic savings used to purchase gold into financial savings.

Nish Bhatt, founder and CEO of Millwood Kane International, said of the sovereign gold bond scheme: “SGB is an efficient way for investors looking to take exposure to gold. There are no storage fees, taxes as there is when buying physical gold. “Paper gold has a higher redemption value and can be easily used to take out loans against it. SGB comes with a 2.5 percent coupon and a tax benefit for its investors.”

He further noted that the plan has been a huge success for the government as it has raised more than Rs 32,000 crores since its inception in 2015.

“Right now, gold prices are trading near their two-month low. The gold price is close to Rs 9000/10g below their 2020 peak. The weakness is mainly due to the US Fed’s minutes indicating a faster rate hike and also a reduction in bond purchases than previously estimated,” Bhatt said in a statement. a statement.

Going forward, the pace at which global central banks will ease monetary positions will drive the movement of the US dollar in gold prices into the year 2022, he noted.

-with PTI inputs