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Sovereign Gold Bond

Finance Minister Nirmala Sitharaman, in her first budget speech on July 5, announced an increase in import duties on gold from 10 percent to 12.5 percent. percent. After the announcement of the increase in import duties, the price of gold saw a huge rise. However, here is good news for individuals who are considering investing in gold. The government gives the opportunity to buy gold at a cheap price compared to the market price. The price of gold was set by the Reserve Bank of India.

Modi Government has launched Sovereign Gold Bond (SGB) whereby you will get gold below market price. The price of one gram of gold has been kept at Rs 3,443. Particularly by virtue of this instead of gold, one will get a purchased gold bond issued by the RBI bank.

“The nominal value of the bond based on the simple average of the closing prices of gold of purity 999 for the last three working days of the week preceding the subscription period, that is from July 3 to July 5, 2019, amounts to at Rs 3,443 per gram, “said in a statement. The Sovereign Gold Bond Scheme 2019-20 – Series II was open for subscription from July 08 to July 12, 2019, according to a statement from the Reserve Bank of India (RBI).

Sovereign Gold Bond Scheme issuance schedule:



Subscription date

Date of issue


2019-20 Series I

June 03 – 07, 2019

June 11, 2019


2019-20 Series II

July 08-12, 2019

July 16, 2019


2019-20 Series III

August 05-09, 2019

August 14, 2019


2019-20 Series IV

September 09-13, 2019

September 17, 2019

Additional discount on online payment:

By purchasing Sovereign Gold Bond online you will get an additional discount of Rs 50 / per gram. People who invest for Sovereign Gold Bond online will only pay Rs 3,393 per gram of gold. While the price of a gram of 22 karat pure gold in Delhi is Rs 3360 and 24 karat of a gram of gold is Rs. 3528.

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“The Indian government, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram less than face value to investors who apply online and payment for the application is made digitally. For these investors, the issue price of the Gold Bond will be 3,146 rupees per gram of gold, ”RBI said in a statement.

Investment conditions?

You have to buy a minimum of one gram of gold. During this time, an individual can buy a maximum of 4 kg of gold. Each year, 2.5 percent interest will be earned on the gold purchased.

1. The sovereign gold bond has a term of 8 years.

2. However, after five years, it can be sold.
3. Three days before the bond is sold (at least five years later), it will be redeemed at the simple average price.

The characteristics of the Bond are:

Sl. No.




Product Name

Sovereign Gold Bond 2019-20



To be issued by Reserve Bank India on behalf of the Government of India.



The Bonds will be reserved for sale to resident individuals, HUFs, trusts, universities and charitable institutions.



The Bonds will be denominated in multiples of gram (s) of gold with a base unit of 1 gram.



The term of the Bond will be 8 years with an exit option after the 5th year to be exercised on the interest payment dates.


Minimum size

The minimum authorized investment will be 1 gram of gold.


Maximum limit

The maximum subscription limit will be 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities per fiscal year (April-March) notified by the government from time to time.

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