New Delhi | Jagran Business Desk: Are you looking to invest in gold? If yes, then here is your chance to buy gold at cheaper rates than the market price. The scheme allowing investors to buy gold at cheaper rates is part of the government's Sovereign Gold Bonds Scheme. Under the Gold Bond scheme, those willing to invest in gold can buy the precious metal at cheaper rates from August 31.

The Reserve Bank of India (RBI) will launch the sixth phase of the Sovereign Gold Bond Scheme on August 31. People will be allowed to buy gold under the Gold Bond scheme until September 4. The central bank has fixed the price at Rs 5,117 per gram.

Moreover, an additional discount of Rs 50 per gram will also be given to investors applying and making payment via digital mediums. For such investors, the effective price under the bond will be Rs 5,067 per gram.

What is the sovereign gold bond?

The government of India had started the Gold Bond scheme for investors in November 2015 to reduce the demand for physical gold. Under the scheme, people get the opportunity to invest in gold but don't need to buy the yellow metal in physical form. People can redeem their bonds in cash upon maturity. Moreover, investors also get interest on their gold bonds at an annual rate of 2.5 per cent.

Who can invest?

Indian citizens, Hindu undivided families, trusts, universities and charitable institutions can buy gold bonds. These bonds are issued for eight years but the government provides investors an option to exit the scheme after five years. Gold bonds are sold by commercial banks, stock holding corporations, post offices and stock exchanges BSE and NSE.

Posted By: Shashikant Sharma