There is some options available in market to invest into gold.
1- Physical Gold
2- Exchange traded funds
3- Digital gold
4- Gold Mutual Fund
5- SOVEREIGN gold bonds
If you analyze deep ,then you will find that the most attractive option is SOVEREIGN GOLD BONDS.
There is maximum return, interest income, safety, security, liquidity and many more advantages.
Sadhan simplifies Investing into Sovereign Gold Bond here https://youtu.be/f950SQOv9Yg
This is 4th video on Sadhan Simplify Gold Series. In this episode Sadhan clarifies What is Sovereign Gold Bond and how to invest in it. Sadhan simplified that the RBI Gold bonds are good instrument to invest for someone with a future need of gold for making jewellery/ornament.
This video answers following:
4 Ways to Buy Gold
What are #sovereigngoldbonds ?
Features of #goldbond
How Does Gold Bond Works?
Benefits of Sovereign Gold Bond #GoldETF vs Sovereign Gold Bond
Past 8 year return of Gold
Who Should buy SGB #assetallocation#personalfinances#learntoinvest#sadhansimplified#stockmarketinvesting#stockmarketcourse
0 14 August, 2020
https://digitalhindian.com/sovereign-gold-bonds-in-hindi/ #SGB की अंतिम तिथि 7 अगस्त, 2020. क्या आपने निवेश किया ? #स ॉवरेन-गोल्ड-बांड्स #SovereignGoldBonds
One can invest through Scheduled Commercial Banks (excluding Small Finance Banks and Payment Banks), designated Post Offices, Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges like, National Stock Exchange of India and Bombay Stock Exchange which are authorized to receive applications for the Bonds.
Buying and selling of SGB units are also allowed anytime during the year on stock exchanges. This provides liquidity as one redeem them before maturity.
The minimum investment in SGB is one gram while the maximum is 4 kg of gold in one financial year. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.
On your investment in SGB, the government also pays an annual interest rate of 2.5 per cent, which is payable half-yearly. The interest earned is taxable, however, capital gains, if any on maturity redemption will be tax-free ( tax-exempt) in the hands of the investor.
The bonds may be used as collateral security for any loan. The Loan to Value ratio as applicable to any ordinary gold loan mandated by the Reserve Bank of India also applies to the sovereign gold bonds.
Disclaimer: The vision of Stock Market Times is to promote financial literacy in India.The content that we post is purely for education and entertainment purpose.We are not SEBI registered financial advisor.Therefore we do not provide any investment or financial advisory services. You will be solely responsible for your own money and your decisions.Please consult a SEBI registered financial advisor for your financial matters.
👉Do you know that India imports 800-900 tonnes of Gold? Well, not just for jewellery, but Indians also consider Gold as a safe investment option. But when it comes to investing in an instrument with underlying Gold as an option, "Sovereign Gold Bonds" are the best!
👉Watch the video to know why SGBs are a good investment option. Do read my blogpost on www.mommyinme.com
👉I've created an infographic (sharing in my stories) around Physical Gold Vs Gold ETFs Vs Sovereign Gold Bonds.
A fairly new instrument, Sovereign Gold Bonds are a great option to hedge your portfolio (kind of risk-free , long term investment with guaranteed returns).
Opt for this investment option, if you are planning to invest in physical Gold (for investment purposes).
On April 20th, the RBI will begin issuing a fresh batch of sovereign gold bonds on behalf of the government. Here's how this works.
You say you want 20 gms of gold and pay in cash based on rates set by the bullion association. The govt takes your money and then whips out a promissory note to pay you exactly what these 20 gms will be worth 8 years from now.
It's all very nice. And gold bonds offer a host of benefits over the physical commodity like zero making charges, tax benefits, and a 2.5% annual interest. But you can still see why they won't appeal to a majority of Indians who like holding and flaunting gold.
but what about rational investors?
Gold has done quite well as an asset class. In the past 15 years, it’s offered investors a CAGR of close to 9.8, compared to 8.4% CAGR from US Equities.
But the thing is, gold also has a dark side- volatility.
For instance in 1979, gold prices rallied a whopping 120 %. The next year, it rallied 29%. Unfortunately, things got ugly soon after. In 1981, gold lost 32%, and it never really recovered until 2006, when priced hit the $594 mark — the same price it was trading at, back in 1980.