Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Foundations

Video: Demystifying the Sovereign Gold Bond Scheme

Today we speak of the Sovereign Gold Bond Scheme where the Government Will Sell You Gold!

No, actually the government will sell you a bond that looks and behaves exactly like Gold, but it’s not actual gold. We spoke of it as a SoBoGoS scheme, where we added a lot of snark to explain the concept.

Read: What is the SoBoGoS Scheme?

Now we finally have a notification from the RBI about what this scheme really is:

  • Buy The Gold Bond From Banks or Post Offices: Current Tranche open between Nov 5 and Nov 20, 2015.
  • Min 2 grams, Max 500 grams, multiples of 1 gram
  • Get a Holding Certificate
    • Can be dematerialized
  • In Tranches, not on Tap
  • Pay according to prev week’s average price of IBJA gold
  • Interest of 2.75% on invested money, half of that every six months
  • Redeemed after 8 years
    • After five years, can be redeemed on interest payment dates, twice a year
  • Can take loans
  • Tax as per LTCG like real gold
  • Apply – banks, post office etc.
  • No NRIs, Foreigners, Companies

Stop! Can’t You Explain Better?

Of course, which is why we have a video:

Do let us know what you think!

Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial