Buying Sovereign Gold Bonds from the Stock Market: A Step-by-Step Guide
Investors can now buy Sovereign Gold Bonds from the secondary market, i.e. the stock exchanges. Here's a 4-point guide to help you invest in SGBs.
Sovereign Gold BondsStock MarketInvestmentRbiGold BondsReal Estate NewsAug 28, 2024
The price of Sovereign Gold Bonds (SGBs) in the secondary market is primarily influenced by the forces of supply and demand, akin to how other financial securities are traded. It is observed that SGBs often trade at a price lower than the prevailing spot price of gold due to market dynamics and investor sentiment.
According to a report in the Economic Times, SGB prices have shot up by at least 7-8% on the National Stock Exchange (NSE) compared to the actual 999 purity gold price. Aksha Kamboj, Vice President of India Bullion & Jewellers Association (IBJA) and the Executive Chairperson of Aspect Global Ventures, said \
Frequently Asked Questions
What is the minimum investment requirement for SGBs?
The minimum investment requirement for SGBs is 1 gram.
What is the maximum limit for investing in SGBs for individual investors?
The maximum allowable investment is 4 kilograms for individual investors and Hindu Undivided Families.
How can I purchase SGBs through the stock market?
To purchase SGBs through the stock market, you must identify discounted or high-yielding SGBs on the NSE or BSE, locate the SGB scrip code in your demat account, and place a buy order for the desired quantity.
What are the tax implications of exiting a gold bond investment?
Tax implications of exiting a gold bond investment vary based on the chosen method. If you decide to exit your gold bond investment early, the tax implications will differ.
Can I redeem my SGBs prematurely?
Yes, premature redemption of SGBs can be done, and the RBI has officially announced the calendar for the premature redemption of sovereign gold bonds (SGB) that were issued between the periods of May 2017 and May 2020.
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