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A 2000 discount is available on a sovereign gold bond issue.
Sovereign Gold Bond Scheme: In the midst of the Russia-Ukraine conflict, the latest issuance of sovereign gold bonds went on sale on February 28, 2022, and will be available for purchase until March 4, 2022. As tensions between Ukraine and Russia escalate, gold prices in the domestic market have risen to an 18-month high. The yellow metal, on the other hand, saw a lot of profit-booking there and dropped within 48 hours. Analysts, on the other hand, remain bullish on the precious metal. The retail price of gold in India is currently around 53,000 per 10 gramme, which is about 2000 higher than the sovereign gold bond issue price of 51,090 per 10 gramme.
In reality, individuals who apply online and pay using digital gateways will only have to pay $50,590 per 10 gm because online subscribers who pay digitally would receive a $50 per gm rebate. So, the sovereign gold bond is available at a tempting discount of 2000 to 2400 dollars, and bidding is still open for one more day.
According to commodity market analysts, this Government of India (GoI) offer should be taken advantage of. They said that this was a once-in-a-lifetime opportunity to invest in national gold bonds.
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“MCX gold price today is approximately 51,700 per 10 gm,” said Anuj Gupta, Vice President of IIFL Securities, advising investors to subscribe to the Series X of Sovereign Gold Bond Scheme 2021-22. If we factor in the landing price of $1500 per 10 gm, the retail price in India would be roughly $53,200 per 10 gm. So, for an offline subscriber paying issue price digitally, the Sovereign gold bond price of 51,060 per 10 gm is available at a discount of about 2,000, whilst for an online subscriber paying issue price digitally, it is available at a discount of 2500 per 10 gm.
As a result, one should not lose out on this wonderful opportunity being presented by the Government of India (GoI) through the Reserve Bank of India (RBI).”
Even if the sovereign gold bond had been at level with the retail gold price, Anuj Gupta of IIFL Securities would have recommended’subscribe’ to this GoI offer because it is for a long-term time horizon. He claims that the price of gold has increased by about 70% in the last five years, thus there is no risk in participating in this long-term gold investment strategy.
Long-term gold investors may expect a phenomenal return, according to Pankaj Mathpal, MD and CEO of Optima Money Managers “It’s a great moment to buy sovereign gold bonds because the yellow metal is expected to return roughly 10% to 12% over the next few years. Investing in gold for 5 years or longer at such a low cost should not be overlooked, and the latest tranche of the Sovereign Gold Bond Scheme should be applied for.”