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Sovereign Gold Bond Series 8 Opens Today; Should You Invest?

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The eighth installment of the Sovereign Gold Bond (SGB) program for 2021-22 opened for registration today (November 29) and will run through December 3rd. The issue price is set at 4,791 rupees per gram of yellow metal. However, online subscribers can guarantee these bonds at a discount of 50 rupees per gram.

According to Nish Bahat, founder and CEO of Millwood Kane International, investing in SGB is a fast-paced choice.

“The government has raised more than 31,000 million rupees through the program,” he said.

He further said that one should definitely invest in gold bonds, given their diverse benefits.

Sovereign gold bonds are an effective way to take exposure to gold. There is a storage cost, since the holding format is digital, in addition the investor is expected to earn an interest rate of 2.5% per month. “SGB is a preferred route for the government to convert all gold investments digitally and it will help keep the deficit under control, provide currency support,” he added.
Referring to gold prices, he said that after reaching a peak of 9 months earlier this month, yellow metal has traded in a narrow range in recent meetings.

“Concerns over the new version of the virus have raised new concerns, leading to a softening in the dollar, pushing gold prices up. But the improving economic scenario, global inflation levels, rising interest rates are likely to contain inflation could put pressure on gold.” “Reasonable guidelines regarding exchange rates, economic data and the movement of the dollar will guide gold prices in the near to mid-term range,” he said.

With SGBs, investors do not have to worry about gold storage as it is in the form of Demat. After investing, people get a holding certificate. It includes gold-denominated government securities in which investors are required to pay the issue price in cash.

Those interested in subscribing to SGBs in this share can apply through banks, Stock Holding Corporation of India Limited (SHCIL), NSE and BSE exchanges, dedicated post offices or through agents.

The opinions and investment tips expressed by investment experts at CNBCTV18.com are theirs and not that of the site or its management. CNBCTV18.com recommends that users check with qualified experts before making any investment decisions.

(Edited by : Abhishek Ja)

First published: IS

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