2024-07-28 21:11:15
New Delhi: Those who have invested in Sovereign Gold Bond (SGB) may get a shock. It is believed that the government may close this scheme of investing in gold. If this happens, then those investors who have invested in it with the hope of good returns will suffer a lot. If the government does not close this scheme, then it can also reduce its installment. Let us tell you that in the recently presented budget, the custom duty on gold and silver has been reduced. Since then its demand has decreased and the price is falling.
According to a news from Money Control, the demand for sovereign gold bonds may decrease due to the reduction in custom duty. At the same time, the government believes that this scheme is becoming expensive for it. This is the reason why the government is planning to close or reduce this scheme. On the other hand, according to a senior government official, the government has reduced the target of issuing sovereign gold bonds for this financial year by 38%. According to the official, now the government is planning to issue ‘paper gold’ worth Rs 18,500 crore in 2024-25. Rs 29,638 crore was estimated in the interim budget.
Gold Price: After the budget, gold became cheaper by more than Rs 6,000, know how far the price will fall
First know what is this scheme
This scheme was started in 2015. In this, the investor has to buy gold in the form of paper. It is bought at the rate of one gram per unit. For this, series are issued from time to time. That is, you will be able to invest only when the series is issued. On investing in this, interest is being given at the rate of 2.5 percent per annum. Its maturity is 8 years. When it is redeemed at the time of maturity, the price is calculated on the basis of the average closing price of gold 3 days before the date of redemption.
Will investors suffer losses?
Investors who had invested in this series 8 years ago may now face losses. Actually, the series for the year 2016-17 was released on 1 August 2016. At that time its issue price was Rs 3119 per gram. At that time an annual interest of 2.75 percent was being given on it. The maturity of this series is going to happen next month i.e. in August. Before the budget, the price of gold was around Rs 74 thousand per 10 grams. If the government had not reduced the custom duty on gold, the price of gold could have increased further. But this has reduced the price of gold. If the custom duty was not reduced, let us assume that the price of gold in August would have been Rs 75 thousand per 10 grams and now it will be around Rs 70 thousand, then in such a situation the investor has suffered a loss of Rs 5 thousand per 10 grams.
… then the government would have had to pay more money
If the price of gold had been high, the government would have also had to pay more money to the investors. In such a situation, the fall in the price of gold due to the reduction in custom duty has caused loss to those who invested in Sovereign Gold Bond. That is, the price they would have received on maturity, they may not get it now. At the same time, due to the fall in the price of gold, the government has also reduced the bond this time.