Business

Sovereign gold bonds on sale at Rs 3,214: Government


New Delhi, Jan 12 (IANS): A new series of sovereign gold bonds will be available at Rs 3,214 per gram between January 14 and January 18, the government said on Saturday.

Investors who apply and make payment online for the Sovereign Gold Bond Scheme 2018-19 - Series V will get a discount of Rs 50 per gram, the Ministry of Finance said.

"The issue price of the bond during this subscription period shall be Rs 3,214 per gram with the settlement date of January 22, 2019," the Ministry said in its statement.

The Reserve Bank of India (RBI) on Friday said the nominal value of the bond is based on the simple average closing price for gold of 999 purity of the last three business days (January 9-11) of the preceding week.

"The Government of India in consultation with the RBI has decided to allow discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode," the Ministry said.

For such investors, the issue price of gold bond will be Rs 3,164 per gram of gold.

Sovereign gold bonds, issued on behalf of the government by the RBI to resident Indian entities, are denominated in grams of gold. Investment in these bonds can be done in multiples of one gram with a maximum limit of 500 gms per person per year.

Launched in 2015, the scheme is aimed at reducing the demand for physical gold by shifting a part of the physical bars and coins purchased every year for investment into gold bonds.

The sovereign gold bonds are likely to help maintain the country's Current Account Deficit (CAD) as most of the demand for gold in India is met through imports.

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