homepersonal finance NewsSovereign Gold Bond tranche 2 to open on Monday, expert foresees over 20% returns

Sovereign Gold Bond tranche 2 to open on Monday, expert foresees over 20% returns

By Anshul  Sept 9, 2023 2:20:39 PM IST (Updated)

4 Min Read

The Reserve Bank of India (RBI) announced on Friday, September 8, the issue price for the upcoming Sovereign Gold Bond (SGB) Tranche 2, scheduled to open for subscription on Monday, September 11, 2023. The issue price has been fixed at Rs 5,923 per gram, aiming to provide investors with a decent opportunity to invest in gold.
According to the RBI, the nominal value of the bond is determined based on the simple average of the closing price for gold of 999 purity. To incentivise digital subscriptions, the government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value for investors applying online and making payments through digital modes. This means that online investors will get an issue price of Rs 5,873 per gram, making the SGB even more appealing for those looking to invest in gold.
The Sovereign Gold Bond Scheme, launched in November 2015, aims to reduce the demand for physical gold and encourage domestic savings to flow into financial assets.