SGB 2023-24 Series-I announces price!

Jun 19, 2023

SGB priceSGB 2023-24 Series-I announces price!

In terms of Government of India Notification No.4(6)-B(W&M)/2023 dated June 14, 2023, Sovereign Gold Bonds 2023-24 (Series I) will be opened for subscription during the period June 19-23, 2023 with Settlement date June 27, 2023.

The issue price of the Bond during the subscription period shall be Rs 5,926 (Rupees Five Thousand Nine Hundred Twenty Six only) per gram, as also published by RBI. The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode.

For such investors the issue price of Gold Bond will be Rs 5,876 (Rupees Five Thousand Eight Hundred Seventy Six only) per gram of gold.

in the context of SGB Series-I 2023-24, Colin Shah, MD, Kama Jewelry said, “There are few avenues to invest in gold. Some people prefer to invest in physical gold that can be worn on a daily basis. Some are artistic pieces passed on to future generations. Other than physical gold, there are some platforms offering digital gold. Then there are gold ETFs, and finally, we can invest in paper gold.”

By adding he said, the price for Series-I 2023-24 is fixed at Rs 5,926/gm. Investment in Sovereign Gold Bonds does away the need to store it in vaults, it provides a high level of liquidity. The RBI pays 2.5% interest on SGB paid semi-annually.

Gold prices have gained over 17% in FY23, around 8.2% YTD. The gold bond scheme floated by the RBI in 2015 has provided double-digit returns. Gold prices traded with mixed cues until the Fed announced its monetary policy last week.

The commentary indicated at least 2 more rate hikes in the current cycle. This led to a rise in gold prices. Moving forward, the Chinese central bank will announce its monetary policy and a likely stimulus later this week. Any easing in rates will support gold prices. Expectations of global central banks easing rates from CY24 onwards will support the yellow metal.

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