What is a gold bond? What are the benefits of investing in this?

Just as many people buy and invest in gold, many people also invest in gold bonds. What is the use of this? Let's see here. gold Bonds gold bonds are considered to be the best idea for investing savings. Many are profiting from this unique investment. These bonds are issued by RBI. This enables an individual to hold gold as an asset rather than holding it in their hands. In 2015, gold bonds were introduced. These are investments instead of gold. By investing in it, the investors can get interest from it. Investors can secure the bond by paying a certain amount in cash. This bond is issued by the Reserve bank of India.

RBI issues gold bonds to consumers on behalf of the government. Many people have faith in it. SGBs are government bonds denominated in grams of gold. They are a substitute for holding real gold.

Who can buy it?

According to the Foreign Exchange Management Act, all indians are eligible to buy gold bonds.
How to buy?

Gold bonds can be bought online through a demat account. You can buy it in person. If you buy online, you will get a discount of Rs.50. It should be purchased only through an authorized sales agent.

What is the benefit of investing in it?

Interest Payment: For investors, the gold bond offers 2.5% interest. This interest is paid semi-annually. Also, it does not include GST charges.
Are there storage costs:

Gold bondholders in demat mode do not need to incur any savings expenses except annual maintenance charges.

No fear of mixing:

When buying gold, check whether it has adulteration or damage. But, there is no need for that fear in gold bonds. The Reserve bank itself provides a guarantee for this.
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Sowmiya Sriram

09/03/2024 11:47 AM