The first series of Sovereign Gold Bond Scheme 2024 Series 4 will be available for investment from 12th February to 16th February 2024. 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% !!
Also, the SGB 2018-19, Series VI which was issued at Rs.3,326 is now eligible for premature redemption on 12th February 2024 at the price of Rs.6,263. Then the tax-free return (excluding the interest) is 13.49%!!
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…