Sovereign Gold Bond Scheme: Attractive Growth And Interest Income - Details

rbi-issues sovereign gold bonds offer attractive growth and interest income – details

Are you considering investment options for your savings? Here is a government-backed investment scheme that has been rewarding for investors: the Sovereign Gold Bond. According to the NavBharat Times, this scheme presents an opportunity for future investments.

What is Sovereign Gold Bond?

The Sovereign Gold Bond Scheme is a government initiative, offering an alternative to holding physical gold. The bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. The report added that they not only provide the price appreciation potential of gold but also pay an interest of 2.5 per cent per annum.

Remarkable Growth in Value

According to the report, the first series of the Sovereign Gold Bond, maturing on November 30, 2023, was initially issued on November 26, 2015, at Rs 2,684 per gram. With the current gold prices hovering around Rs 6,100 per gram, the value of these bonds has more than doubled. For instance, an investment of Rs 1 lakh in this series would now be valued at approximately Rs 2.30 lakh. The exact redemption price will be based on the average gold rate of the last three days of this month, as published by the Indian Bullion and Jewellers Association (IBJA).

Comparison with Fixed Deposits

In comparison to fixed deposits, where your money could double in about 10 years at a 7 per cent interest rate, Sovereign Gold Bonds offer the added advantage of potential gold price appreciation. This makes them an appealing alternative for those looking for a combination of safety, interest income, and growth potential.

Investment and Maturity Details

The maturity period for Sovereign Gold Bonds is 8 years, but investors have the option to exit the investment after 5 years. This flexibility allows investors to align their investment with their financial goals while enjoying the stability and benefits of a government-backed scheme.

Future Investment Opportunities

If you haven’t yet invested in Sovereign Gold Bonds, keep an eye out for the next series release. It offers a unique opportunity to diversify your investment portfolio and leverage the potential growth linked to gold prices.