Modi government will sell cheaper gold from June 8, the price of 10 grams of gold can reach Rs 54,000 by next year

By Shivani Reddy On May 27, 2020

Investing in gold is considered better because of the stock market uncertainty due to the corona crisis and lockdown. This is an option in which risk is low and returns are good. If you also want to invest in gold, then the Modi government is going to give the opportunity to invest in gold once again from June 8. Under the third installment of the Modi government sovereign gold bond, it can be subscribed between June 8 and 12. Its installment will be released on 16 June. Earlier, there were record investments in the April and May series.

Gold price can go up to 54,000

According to market experts, within the next few months, gold can touch the level of Rs 54,000 per 10 grams. As of now, it has paid up to Rs 48,000 per 10 grams and remains around 47000. Let us tell you that there has been a 40% return on gold in the last one year. According to a report by the World Gold Council, there has been tremendous investment demand in gold during the first quarter of 2020. This report said, “On a year-on-year basis, gold demand grew by 80 percent to 539.6 tonnes.”

Rules for buying Sovereign Gold Bonds

A person investing in the Sovereign Gold Bond Scheme can buy up to 500 grams of gold bonds in a financial year. There is a minimum investment of one gram. You can save tax by investing in this scheme. Bonds will be banned for sale to trustee individuals, HUFs, trusts, universities and charitable institutions. The maximum subscription limit would be 4 kg per person, 4 kg for HUF and 20 kg for trusts and the same per financial year (April-March).

Also read: Who is the best in Physical Gold, ETF and Sovereign Gold Bond, know here

The price will be fixed in this way

On the issue price, RBI said that it is based on the simple average of the closing price of 999 purity gold published by the Indian Bullion and Jewelers Association Limited. There is a discount of Rs 50 per gram or Rs 500 per 10 gram on buying online. SGB will be sold through banks (excluding small finance banks and payment banks), stock holding corporation of India (SHCIL), designated post offices and recognized stock exchanges (NSE and BSE).

2.5% guaranteed fixed interest

It is also important to know that the duration of these bonds is 8 years and premature withdrawal can be done only after the 5th year. Its most important thing is that the investor gets the benefit of increasing the price of gold. Also, they get 2.5% guaranteed fixed interest on the investment amount.

Also read: Gold Price Today: Gold prices fall from 24 to 18 carats, know today’s Taj price

Third Series: Subscriptions can be taken from June 8 to 12. Its installment will be released on 16 June.
Fourth Series: Subscriptions can be taken from July 6 to July 10. Its installment will be released on 14 July.
Fifth Series: Subscriptions can be taken from August 3 to August 7. Its installment will be released on 11 August.
Sixth Series: Subscriptions can be taken from 31 August to 4 September. Its installment will be released on 8 September.

Investment of 822 crores in first series

In the first series, it has been subscribed between April 20 and April 24. The first installment was released on 28 April. There has been a tremendous craze among investors regarding the April series of gold bonds. According to the information given by RBI, the April series received a subscription of about 822 million for 17.73 lakh units. This is the highest subscription since October 2016. In April series, the price of gold bond was fixed at 4,639 per gram.

25 lakh units sold in the second installment

The government has earned Rs 1,168 crore by selling 25 lakh units through gold bonds in May. The data released by the Reserve Bank of India shows that it is the largest ever through Sovereign Gold Bonds. Between May 11 and 15, the price of one unit of gold in subscription was Rs 4,590. The highest earnings were made in October 2016 through gold bonds before May. There was a total subscription of Rs 1,082 crore in October 2016, with a total of 35.98 lakh units sold.