Covid-19: Opportunity to buy cheap gold amid lockdown from May 11, apply in Sovereign Gold Bond

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New Delhi, May 09: Amidst the pandemic of Covid-19 and the nationwide lockdown, the government is offering an opportunity to buy gold in the cheap price.

The second series of Sovereign Gold Bond will be opened from Monday in the financial year 2020-21 by the Central Government. If you are thinking of buying gold, then in this series you can buy gold in cheap. This scheme of the Government of India will be opened for subscription from May 11 to May 15.

Bonds will be issued to investors after subscription to Sovereign Gold Bond. Investors in this scheme can apply online for investment. The price for this phase of Sovereign Gold Bond has been fixed at Rs 4,590 per gram, while the issue price for the first phase was Rs 4,639 per gram. The first issue of Sovereign Gold Bond was opened from April 20 to April 24, 2020.

An investor investing in the Sovereign Gold Bond Scheme can purchase a maximum of 500 grams of gold bonds in a financial year, while a minimum investment of one gram is required. You can save tax by investing in this scheme. Along with this, 2.5% per annum will be earned on the investment under the scheme.

According to an RBI statement, the issue price of Sovereign Gold Bond has been fixed at 4,590 per gram. There will be a discount of Rs 50 per gram on online application and payment for the bond. With this rebate, the issue price of this bond will be Rs 4,540 per gram. The smallest bond under this scheme will be equal to 1 gram of gold.

It is worth mentioning that a person can buy a maximum gold bond of 4 kg in a financial year, while one can buy a 20 kg gold bond for a trust and organization. The maturity period of this scheme is 8 years. But if someone wants to sell the bond prematurely, one has to wait for five years. The scheme was launched in November 2015.

Sovereign Gold Bond is sold through banks, Stock Holding Corporation of India Limited, selected post offices, NSE and BSE. According to the Reserve Bank, April Series Bond received a subscription of about Rs 822 crore for 17.73 lakh units, the highest subscription since October 2016.