As festivals and wedding season is on its way, several people choose to invest in gold. If you are also planning to invest in gold then here is the best way to do it right away, despite the constant rise in the gold price.
You can invest in gold by purchasing paper gold or sovereign gold that has been made available by the Reserve Bank of India (RBI). Recently, the central bank has issued Sovereign Gold Bond 2019-20 Series III at price of Rs 3,499 per gram ( Rs 50 discount if purchased online).
"Government of India in consultation with the Reserve Bank of India has decided to allow a 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 3,449 (Rupees Three Thousand Four Hundred Forty-Nine only) per gram of gold," Finance Ministry had said in a statement.
SGB 2019-20 Series III:
Opening date: August 5, 2019
Closing date: August 14, 2019
How you can save by investing in gold?
The current price of gold in the market is around Rs 38,000 per 10 gram. If one buys 10 units of SGB (which will be equivalent to 10 gram of gold), then one can easily save over Rs 3000.
Here's the basic calculation:
Price per unit of SGB is Rs 3499 ( if purchased online)
Price of 10 units of SGB = 10 x3499 = Rs 34,990.
Current market price of Gold = Rs 38,000 (approx).
Your saving is = Rs 38,000 - Rs 34,990 = Rs 3010.
Woah! Other perks:
Unlike gold, SGBs offer an interest rate of 2.50 per cent per annum. RBI says, "The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value." So, you can make an earning through your gold investment.