Sovereign Gold Bond Scheme 2023-24 Series 3 will be available for investment from 18th December to 22nd December 2023. Should you buy it?
With the recent wonderful returns of the first Sovereign Gold Bond, many are attracted to this product. RBI issued the first Sovereign Gold Bond in November 2015. Hence, 8 years completed in November 2023. The issue price was Rs.2,684 per gram (per bond). The redemption price set by RBI for this bond was Rs.6,132. Hence, the return on investment is 10.88% (excluding 2.5% yearly interest). If we add the interest, then it is around 12.5% !!
Whether the journey smooth in the last 8 years for the gold?
Notice the flat and bumpy ride of the last 8 years of gold. From 2015 to 2019 it was one trend and from 2019 onwards uptrend but within the rangebound for the next four years. I wrote a post by looking at the past 44 years of gold data and how much the volatile gold price movement is. Also, I have shown even if you hold the gold for 8 years (equal to the…