Chennai: People are more interested in investing in gold bonds issued by the Reserve Bank of India as they are 100 percent safe and offer high returns.
Gold is a commodity that people like to buy for various reasons like beauty, savings and investment. Some buy it as jewelry and wear it. Some people buy and save gold bars and gold coins for investment purposes. As it lends a helping hand in times of emergency like education, medicine and marriage, the value of gold keeps increasing as well as the price. As the demand is increasing day by day, gold is being imported in large quantities from foreign countries. Due to this, the foreign exchange is reduced and the Indian economy is facing a major problem.
80% profit in last 5 years
In order to solve this, the central government has introduced and encouraged electronic gold called ‘Digital Gold’. One type of this is a gold bond called ‘Sovereign Gold Bond’. These gold bonds are issued by the Reserve Bank of India. Those who have bought this have got about 80 percent profit in the last 5 years. Due to this, there has been a lot of interest among the public to buy these bonds.
On how to buy gold bonds and its benefits, RBI officials said:
A maximum of 4 kg can be purchased
Gold bonds issued by the central government can be purchased in denominations of 1, 5, 10, 50, and 100 grams. An individual can buy a maximum of 4 kg of gold in a financial year. You can buy gold bonds if you have a bank savings account, PAN number, Aadhaar number. It can be purchased in paper form and electronically online. A demat account is required for electronic purchases. These bonds are also sold through banks, post offices and stock exchanges.
Being listed on the stock exchange, these securities can be sold anytime through a demat account. In this scheme, no gold will be paid out after the investment period. Instead, it will be paid in cash. You can use that money to buy the required jewelry.
Usually, commission and damages are charged when we buy gold jewelery with our savings. But by buying gold bonds, such losses are avoided. There is no risk of theft as it is not in the form of jewelry but in the form of a bond. There is no locker cost to protect it.
Investors will also get interest of 2.5 percent per annum, apart from the profit from rising gold prices. Being a central government scheme, it is 100 percent guaranteed. Also, the title can be transferred from one name to another.
The maturity period of this bond is 8 years. But after the completion of 5 years, there is a facility to return the bond and take the investment.
Last year 2016, the price of one bond was issued at Rs.2,600. Currently it is more than 80 percent profitable. RBI issues these bonds only a few times a year. This scheme is suitable for bulk investors in gold.
Officials said.