India is one of the major Gold importer country.Country need to spend more dollars for Gold imports which creates higher deficit.
To discourage investors buying gold in physical form,Govt has come with series of Gold bonds which are being issued with time interval.
Benefits of Gold Bonds:
- Unlike physical gold, investor will get interest on gold bonds.
- No storage cost like physical gold.
- No risk of impurities , theft etc.
- Good option if you need gold only after 5-8 years.
- Good option to hedge risk of gold price rise.
Important Dates:
- Issue open date: March 08, 2016.
- Issue close date:March 14, 2016.
Details of Gold Bonds:
- Issue price :Rs. 2916 per Gram as per IBJA rates.
- Bonds can be subscribed through different modes like cash,cheque/DD , Electronic mode.
- Minimum subscription : 2 Gram.
- Tenure of bonds : 08 years.
- Premature withdrawal : Premature redemption is possible from completion of 5th year on wards on any coupon payment date.
- Max subscription : 1000 Gram. Its 25 Kg for trusts,charitable institutions , universities.
- Mode of holding : Bonds can be applied in demat or physical mode.
- Interest rate: 2.75% p.a payable half yearly on initial subscription value..Interest will be directly credited in account provided by bond holder.
- Nomination : Bond holder can nominate max up to 02 nominees.If bond holder is minor then nomination can not be done.
- Bonds can be used as collateral against loan.
- Investor can visit scheduled bank, selected post office,stock broker to seek more information and subscribe to Gold bonds.
Concluding,Gold bonds is better way over physical gold if you need gold after 5-8 years.It will pay interest as well save storage cost.It will also help nation to save some dollars..
