Opening on February 12 is the Sovereign Gold Bond 2023–24 Series IV. These are the specifics:

The SGB subscription period will run from February 12, 2024, to February 16, 2024, a period of five days. The date of the issuance is set for February 21, 2024.

Investing in Sovereign Gold Bonds:

On February 12 (Monday), the final subscription for the Sovereign Gold Bonds (SGBs) 2023–24 Series IV will open. The SGB subscription period will run from February 12, 2024, to February 16, 2024, a period of five days. The date of the issuance is set for February 21, 2024. 

The subscription period for the final tranche, the Sovereign Gold Bond Series 2023–24 Series III, opened on December 18 and ended on December 22, 2023. The SGB Series III was issued on December 28, 2023. 

Sovereign Gold Bonds, or SGBs, were introduced by the Indian government in 2015 and have since gained popularity among investors as a cutting-edge gold investment strategy. The Government Securities Act of 2006 recognizes the SGBs as Government of India Stock.

These bonds have a favorable 2.50 percent annual interest rate, which is credited to the investor’s account twice a year. The bond’s maturity date is when the final interest payment is made.

The SGBs have a fundamental unit of one gram and are expressed in grams of gold multiples. The SGB has an eight-year tenor, and after the fifth year, investors have the option to redeem their shares early. This option must be used by the date interest is due.

These bonds are not subject to redemption taxes when they mature. They are therefore a desirable choice for long-term investors. While physical gold assets may have more liquidity than Sovereign Gold Bonds (SGBs), SGBs have the benefit of being tradable on stock exchanges in as little as two weeks after they are issued.

How to purchase SGBs:

SGBs can be purchased through designated post offices, the National Stock Exchange of India, the Bombay Stock Exchange, the Stock Holding Corporation of India (SHCIL), the Clearing Corporation of India (CCIL), and scheduled commercial banks (except small finance, payment, and regional rural banks).

Assessment of SGBs:

The average closing price of 999 purity gold for the three working days prior to the subscription period (February 7 to February 9) is used to value SGBs. There is a 50 paise per gram discount for digital payments made through online subscriptions. The price of the most recent batch of SGBs, which was released in December 2023, was Rs 6,199 per gram. Individuals can invest as little as one gram, up to a maximum of four kilograms per subscription. The guidelines for the SGB scheme say: “The redemption price shall be fixed in Indian Rupees on the basis of the previous week’s simple average closing price for gold of 999 purity, published by India Bullion and Jewellers Association (IBJA).”

Profit on SGBs: 

The initial SGB series, which went on sale in 2015, matured at the end of 2023 and produced returns of 12.9% annually. In contrast, over the previous 20 years, the yellow metal has returned 11.2% on average. On February 8, 2024, the SGBs (SGB 2016-I) that were issued on that date matured. On the other hand, the SGB 2016–17 Series I, which was released on August 5, 2016, had an early redemption window that opened on February 5, 2024.