Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Sovereign Gold Bonds


Sovereign Gold Bonds

As a new tranche of sovereign gold bond is opened up for subscription, here's what you need to know about them

What are Sovereign Gold Bonds
These are bonds which represent a notional amount of Gold, issued by the Government of India. Their price tracks the price of gold. They pay an interest of 2.5% per cent on initial investment, payable every six months. They have a tenure of 8 years and an exit option from the 5th year.


  • They are exempt from capital gains tax on redemption.
  • If you sell them before redemption, you will have to pay long term capital gains tax but you will get the benefit of indexation.
  • The interest on the bonds is taxable.

How to buy
You can buy Sovereign Gold Bonds from banks and post offices after completing the know-your-customer (KYC) documentation. The value of one bond will represent the price of gold per gram.

You can invest a minimum amount equal to one gram of gold and a maximum amount equal to 500 grams of gold.

These bonds can be converted to demat form. They will be listed on exchanges, which means you could exit them in the secondary market if you require the money before maturity. You can also take a loan against these bonds.

our View
We do not recommend gold as an investment. However, if have made up your mind about investing in gold, Sovereign Gold Bonds are the best route to do so.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300


You can write to us at

Invest [at] SaveTaxGetRich [dot] Com


Call us on 94 8300 8300


This post first appeared on Prajna Capital - An Investment Guide, please read the originial post: here

Share the post

Sovereign Gold Bonds


Subscribe to Prajna Capital - An Investment Guide

Get updates delivered right to your inbox!

Thank you for your subscription