Sovereign Gold Bond Scheme 2022 - 23

Sovereign Gold Bond Scheme

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Sovereign Gold Bond Scheme 2022 – 23

The Sovereign Gold Bond Scheme is an investment scheme launched by the Government of India in 2015. It is a government-backed scheme that allows investors to invest in gold without actually buying physical gold. It is issued by the Reserve Bank of India (RBI) on behalf of the government. The bonds are denominated in grams of gold and are sold through banks, stock-holding corporation, and designated post offices.

The bonds are issued in denominations of one gram, five grams, and ten grams of gold and have a maturity period of 8 years and can be sold on stock exchanges. The bonds are issued on payment of the equivalent amount in cash and the investor receives the redemption value in cash on the maturity of the bond. The interest earned on the bonds is tax-free and indexed to the price of gold. The bonds are also eligible for conversion into demat form.

The Sovereign Gold Bond Scheme provides an opportunity to invest in gold without having to pay any making charges and provides investors with a low-risk investment option. It is also a cost-effective way of investing in gold, as the gold bonds are available at a price lower than the market rate for gold. The bonds also offer liquidity, which is not available in physical gold.

The Sovereign Gold Bond Scheme is an attractive investment option for investors who want to invest in gold in a safe and cost-effective manner.

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