Sovereign Gold Bond Scheme are government securities priced against Gold price per gram. It act as a substitute of physical gold.
– We can avail loan option against Sovereign gold bonds. No other Digital gold investment provides this facility.
Maturity period is 8 years and amount will be deposited into the bank account based on prevailing gold price fixed by IBJA. We cannot redeem it in physical form.
Price of Sovereign gold bond is calculated through a simple average of last 3 days of 999 gold purity set by Indian Bullion and Jewellers association limited (IBJA)
– No Capital Gain tax at the time of redemption of Sovereign gold bond. Only if you redeem during maturity.
– Redemption of these bonds is possible after 5 years but on the date of interest payments.
– We get an interest rate of 2.5% P.A (Fixed) on the invested amount. Interest are credited into linked bank account every 6 month.
If we hold these bonds in demat form then we can redeem even before 5 years.
It can be purchased through DEMAT form via you broker (Zerodha / Upstox). Another way to buy Such Sovereign Gold Bond is through Post office.