New Delhi | Jagran Business News: Sovereign Gold Bond Scheme: Are you planning to buy gold this 'Dhanteras'? If yes, then this is your chance to purchase gold at comparetively cheaper rates. The eighth tranche of Sovereign Gold Bond 2020-21 will open for subscription on Monday ahead of Dhanteras and Diwali. Issued by the Reserve Bank India (RBI), the price of gold under the Sovereign Gold Bond Scheme 2020-21-Series VIII has been fixed at Rs 5,177 per gram.

Under the Gold Bond scheme, those willing to invest in gold ahead of Dhanteras and Diwali festivals can buy the precious metal at cheaper rates. The scheme will remain open from November 9 to 13.

"The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity ... works out to Rs 5,177 per gram of gold," the RBI said.

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 buy gold under the Sovereign Gold Bond scheme?

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