Sovereign Gold Bonds Issue Price History (Updated 2021-22)

Sovereign Gold Bonds are regularly offered in various tranches at different issue prices during each financial year. You might want to know what are the historical sovereign gold bond issue prices in India or the sovereign gold bond price today.

But before that, you would want to know how is SGB price calculated?

The answer is that the nominal value or issue price of the gold bond is based on the simple average closing price (published by the India Bullion and Jewellers Association Ltd or IBJA) for gold of 999 purity of the last three working days of the week preceding the subscription period. Also, a discount of Rs 50 per gram will be offered on the issue price of the Gold Bonds for those who subscribe online and pay through digital mode.

So let’s move on.

Here are the details of all the historical issue prices of Sovereign Gold Bond scheme tranches to date:

Sovereign Gold Bond Scheme 2020-21 Series I to XII Issue Price Details

  • Sovereign Gold Bond Scheme 2020-21 Series XII-Issue Price: Rs 4,662/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,612/- per gram of gold. More details available in the press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series XI-Issue Price: Rs 4,912/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,862/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series X-Issue Price: Rs 5,104/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 5,054/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series IX-Issue Price: Rs 5,000/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,950/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series VIII-Issue Price: Rs 5,177/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 5,127/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series VII-Issue Price: Rs 5,051/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 5,001/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series VI-Issue Price: Rs 5,117/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 5,067/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series V-Issue Price: Rs 5,334/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 5,284/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series IV-Issue Price: Rs 4,852/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,802/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series III-Issue Price: Rs 4,677/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,627/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series II-Issue Price: Rs 4,590/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,540/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2020-21 Series I-Issue Price: Rs 4,639/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,589/- per gram of gold. More details available in press release on RBI’s website here.

So that is your answer to questions related to sovereign gold bond 2020-21 price and issue prices for all the tranches in the financial year 2020-21.

Now let’s look at the issue prices for FY2019-20.

Sovereign Gold Bond Scheme 2019-20 Series I to X Issue Price Details

  • Sovereign Gold Bond Scheme 2019-20 Series X-Issue Price: Rs 4,260/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,210/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series IX-Issue Price: Rs 4,070/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 4,020/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series VIII-Issue Price: Rs 4,016/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,966/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series VII-Issue Price: Rs 3,795/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,745/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series VI-Issue Price: Rs 3,835/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,785/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series V-Issue Price: Rs 3,788/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,738/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series IV-Issue Price: Rs 3,890/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,840/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series III-Issue Price: Rs 3,499/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,449/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series II-Issue Price: Rs 3,443/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,393/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2019-20 Series I-Issue Price: Rs 3,196/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,146/- per gram of gold. More details available in press release on RBI’s website here.

So that is your answer to questions related to sovereign gold bond 2019-20 price and issue prices for all the tranches in the financial year 2019-20.

Now let’s look at the issue prices for FY2018-19.

Sovereign Gold Bond Scheme 2018-19 Series I to VI Issue Price Details

  • Sovereign Gold Bond Scheme 2018-19 Series VI-Issue Price: Rs 3,326/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,276/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2018-19 Series V-Issue Price: Rs 3,214/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,164/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2018-19 Series IV-Issue Price: Rs 3,119/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,069/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2018-19 Series III-Issue Price: Rs 3,183/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,133/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2018-19 Series II-Issue Price: Rs 3,146/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,116/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2018-19 Series I-Issue Price: Rs 3,114/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 3,064/- per gram of gold. More details available in press release on RBI’s website here.

So that is your answer to questions related to sovereign gold bond 2018-19 price and issue prices for all the tranches in the financial year 2018-19.

Now let’s look at the issue prices for FY2017-18.

Sovereign Gold Bond Scheme 2017-18 Series I to XIV Issue Price Details

  • Sovereign Gold Bond Scheme 2017-18 Series XIV-Issue Price: Rs 2,881/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,831/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series XIII-Issue Price: Rs 2,866/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,816/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series XII-Issue Price: Rs 2,890/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,840/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series XI-Issue Price: Rs 2,952/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,902/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series X-Issue Price: Rs 2,961/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,911/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series IX-Issue Price: Rs 2,964/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,914/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series VIII-Issue Price: Rs 2,961/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,911/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series VII-Issue Price: Rs 2,934/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,884/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series VI-Issue Price: Rs 2,945/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,895/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series V-Issue Price: Rs 2,971/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,921/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series IV-Issue Price: Rs 2,987/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,937/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series III-Issue Price: Rs 2,956/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,906/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series II-Issue Price: Rs 2,830/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,780/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2017-18 Series I-Issue Price: Rs 2,951/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,901/- per gram of gold. More details available in press release on RBI’s website here.

So that is your answer to questions related to sovereign gold bond 2017-18 price and issue prices for all the tranches in the financial year 2017-18.

Now let’s look at the issue prices for FY2016-17.

Sovereign Gold Bond Scheme 2016-17 Series I to IV Issue Price Details

  • Sovereign Gold Bond Scheme 2016-17 Series IV-Issue Price: Rs 2,943/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,893/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2016-17 Series III-Issue Price: Rs 3,007/- per gram of gold. For online investors / digital payments, a discount of Rs 50/- is available and hence, the issue price of gold bond will be Rs 2,957/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2016-17 Series II-Issue Price: Rs 3,150/- per gram of gold. More details available in press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2016-17 Series I-Issue Price: Rs 3,119/- per gram of gold. More details available in press release on RBI’s website here.

So that is your answer to questions related to sovereign gold bond 2016-17 price and issue prices for all the tranches in the financial year 2016-17.

Now let’s look at the issue prices for the year 2016.

Sovereign Gold Bond Scheme 2016 Issue Price Details

  • Sovereign Gold Bond Scheme 2016 Series II – Issue Price: Rs 2,916/- per gram of gold. More details available in the press release on RBI’s website here.
  • Sovereign Gold Bond Scheme 2016 Series II – Issue Price: Rs 2,600/- per gram of gold. More details available in the press release on RBI’s website here.

So that is your answer to questions related to sovereign gold bond 2016 price and issue prices for all the tranches in the year 2016.

Now let’s look at the issue prices for the year 2015.

Sovereign Gold Bond Scheme 2015 Issue Price Details

  • Sovereign Gold Bond Scheme 2015 Series I – Issue Price: Rs 2,684/- per gram of gold. More details available in the press release on RBI’s website here.

That’s it. These are all the historical issue prices of sovereign gold bonds issued to date since the inception of the gold bond SGB scheme in 2015.

Here is a link on RBI’s website about all the latest notifications and press releases for the Gold Bond scheme to date. You can access the full list here.

The sovereign gold bond (SGB) scheme was a unique initiative of the government of India and launched in 2015 with the aim of reducing the demand for physical gold in India. And for this and to make it more attractive to gold buyers, a unique additional interest of 2.5% per annum (earlier it was 2.75%) was offered. So the Sovereign Gold Bond Scheme has 2 streams of income. The first is the fixed interest of 2.5% per annum paid semi-annually. The second is the potential for capital gains in future as gold prices move up.

Given the problems in buying, storing and quality-related issues of physical gold, it makes sense to instead to invest in gold bonds and ETFs instead of physical gold. You can read my take on this in the national daily Hindustan Times where I talk about Why Indians need to look beyond Physical Gold (and towards Gold Bonds & ETFs)?

Features of Sovereign Gold Bonds in India

Here is a ready reckoner of the features of SGBs or Gold Bonds in India:

  • These bonds are issued by Reserve Bank India on behalf of the Government of India.
  • The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
  • The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
  • The tenor of the Bond will be for a period of 8 years with an exit option after the 5th year to be exercised on the interest payment dates.
  • The minimum permissible investment will be 1 gram of gold.
  • The maximum limit of subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.
  • In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
  • The price of the Bond will be fixed in Indian Rupees on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less for those who subscribe online and pay through digital mode.
  • Payment for the Bonds will be through cash payment (up to a maximum of ₹ 20,000) or demand draft or cheque or electronic banking.
  • The Gold Bonds will be issued as Government of India Stock under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.
  • The redemption price will be in Indian Rupees based on the previous 3 working days simple average of the closing price of gold of 999 purity published by IBJA.
  • Bonds will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.
  • The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
  • Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to the ordinary gold loan mandated by the Reserve Bank from time to time.
  • Know-your-customer (KYC) norms will be the same as that for the purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities.
  • The interest on Gold Bonds shall be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
  • Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

The taxation of gold bonds in a little complicated given that there are two sources of gains, i.e. interest income as well as capital gains. That too depends on the period of holding. I have written about the taxation of gold bonds in great details in this post – Taxation of Gold in India Capital Gains on Selling Gold. If you are interested, then you can have a look at these detailed note to know how gains from gold sale are currently taxed in India.

Issuer of the gold bonds, that is RBI maintains a list of useful Frequently Asked Questions (FAQs) about the gold bonds in India here. Some important ones are provided below for quick reference:

  1. What is Sovereign Gold Bond (SGB)? Who is the issuer? SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of the Government of India.
  2. Why should I buy SGB rather than physical gold? What are the benefits? The quantity of gold for which the investor pays is protected since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating the risk of loss of scrip etc.
  3. Are there any risks in investing in SGBs? There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold that he has paid for.
  4. Who is eligible to invest in the SGBs? Persons resident in India as defined under the Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
  5. Whether joint holding will be allowed? Yes, joint holding is allowed.
  6. Can a Minor invest in SGB? The application on behalf of the minor has to be made by his/her guardian.
  7. Where can investors get the application form? The application form will be provided by the issuing banks/SHCIL offices/designated Post Offices/agents. It can also be downloaded from the RBI’s website. Banks may also provide an online application facility.
  8. What are the Know-Your-Customer (KYC) norms? Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s).
  9. Can an investor hold more than one investor ID for subscribing to the Sovereign Gold Bond? An investor can have only one unique investor Id linked to any of the prescribed identification documents. The unique investor ID is to be used for all the subsequent investments in the scheme. For holding securities in dematerialized form, quoting of PAN in the application form is mandatory.
  10. What is the minimum and maximum limit for investment? The Bonds are issued in denominations of one gram of gold and in multiples thereof. The minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market. The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.
  11. Can each member of my family buy 4Kg in their own name? Yes, each family member can buy the bonds in his/her own name if they satisfy the eligibility criteria as defined at Q.No.4
  12. Can an investor/trust buy 4 Kg/20 Kg worth of SGB every year? An investor/trust can buy 4 Kg/20 Kg worth of gold every year as the ceiling has been fixed on a fiscal year (April-March) basis.
  13. Is the maximum limit of 4 Kg applicable in case of joint holding? The maximum limit will be applicable to the first applicant in case of a joint holding for that specific application.
  14. What is the rate of interest and how will the interest be paid? The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
  15. Who are the authorized agencies selling the SGBs? Bonds are sold through offices or branches of Nationalised Banks, Scheduled Private Banks, Scheduled Foreign Banks, designated Post Offices, Stock Holding Corporation of India Ltd. (SHCIL) and the authorised stock exchanges either directly or through their agents.
  16. If I apply, am I assured of allotment? If the customer meets the eligibility criteria, produces a valid identification document and remits the application money on time, he/she will receive the allotment.
  17. When will the customers be issued Holding Certificate? The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents or obtained directly from RBI on email, if email address is provided in the application form.
  18. Can I apply online? A customer can apply online through the website of the listed scheduled commercial banks. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
  19. At what price the bonds are sold? The nominal value of Gold Bonds shall be in Indian Rupees fixed on the basis of a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription period.
  20. Will RBI publish the rate of gold applicable every day? The price of gold for the relevant tranche will be published on the RBI website two days before the issue opens.
  21. What will I get on redemption? On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the redemption price shall be based on the simple average of the closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.
  22. How will I get the redemption amount? Both interest and redemption proceeds will be credited to the bank account furnished by the customer at the time of buying the bond.
  23. What are the procedures involved during redemption? The investor will be advised one month before maturity regarding the ensuing maturity of the bond. On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record. In case there are changes in any details, such as account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.
  24. Can I encash the bond anytime I want? Is premature redemption allowed? Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges if held in demat form. It can also be transferred to any other eligible investor.
  25. What do I have to do if I want to exit my investment? In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.
  26. Can I gift the bonds to a relative or friend on some occasion? The bond can be gifted/transferable to a relative/friend/anybody who fulfils the eligibility criteria (as mentioned in Q. No. 4). The Bonds shall be transferable in accordance with the provisions of the Government Securities Act 2006 and the Government Securities Regulations 2007 before maturity by execution of an instrument of transfer which is available with the issuing agents.
  27. Can I use these securities as collateral for loans? Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be the same as applicable to ordinary gold loan prescribed by RBI from time to time. Granting a loan against SGBs would be subject to the decision of the bank/financing agency, and cannot be inferred as a matter of right.
  28. What are the tax implications on i) interest and ii) capital gain? Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond.
  29. Is tax deducted at source (TDS) applicable on the bond? TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.
  30. Who will provide other customer services to the investors after the issuance of the bonds? The issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents through which these securities have been purchased will provide other customer services such as change of address, early redemption, nomination, grievance redressal, transfer applications etc. What are the payment options for investing in the Sovereign Gold Bonds? Payment can be made through cash (up to Rs 20,000)/cheques/demand draft/electronic fund transfer.
  31. Whether nomination facility is available for these investments? Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with the Application form. An individual Non – resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor provided that: the Non-Resident investor shall need to hold the security till early redemption or till maturity; and the interest and maturity proceeds of the investment shall not be repatriable.
  32. Can I get the bonds in demat form? The bonds can be held in demat account. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to the allotment of the bond.
  33. Can I trade these bonds? The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges) The bonds can also be sold and transferred as per provisions of the Government Securities Act, 2006. Partial transfer of bonds is also possible.
  34. What is the procedure to be followed in the eventuality of the death of an investor? The nominee/nominees to the bond may approach the respective Receiving Office with their claim. The claim of the nominee/nominees will be recognized in terms of the provision of the Government Securities Act, 2006 read with Chapter III of Government Securities Regulation, 2007. In the absence of nomination, the claim of the executors or administrators of the deceased holder or the claim of the holder of the succession certificate (issued under Part X of the Indian Succession Act) may be submitted to the Receiving Offices/Depository. It may be noted that the above provisions are applicable in the case of a deceased minor investor also. The title of the bond in such cases too will pass to the person fulfilling the criteria laid down in Government Securities Act, 2006 and not necessarily to the Natural Guardian.
  35. Can I get part repayment of these bonds at the time of exercising the put option? Yes, part holdings can be redeemed in multiples of one gm.
  36. How do I contact RBI to address my queries regarding Sovereign Gold Bond? A dedicated email (sgb@rbi.org.in) has been created by the Reserve Bank of India to receive queries from members of the public on Sovereign Gold Bonds. Investors can mail their queries to this email id.

For more precise FAQs, please refer to this link that provides a more condensed and user-friendly list of Gold Bonds & ETF Frequently Asked Questions (FAQs).

Since we are talking about gold bonds, it demands that we also talk about gold ETFs. Depending on what is the real intent to purchase gold (and sell it later), one can pick between gold bonds or gold ETFs to take exposure to gold. Both track gold prices but are slightly different on various other parameters. You can read my detailed comparison of both at Gold ETF Vs Sovereign Gold Bonds to know more and choose the suitable instrument amongst the two.

But irrespective of which you prefer, for many it might make sense to include both gold bonds and ETFs in long term portfolios.

You may ask as to how much gold to have in the long-term portfolio? Sadly, there is no one correct answer here. But in general, having some exposure to gold (ranging from 5-15%) in the long term portfolio is definitely advisable. But do note that gold is more of a diversifier in your portfolio and a kind of hedge for the portfolio. It generally shouldn’t be the core of the portfolio (like equity and debt) unless you are a professional investor or trader. Gold returns can be very lumpy. They don’t move much for years and then suddenly shoot up. So, increase the exposure when returns have been bad for some time and accumulate. And when it shoots up and you have ridden the wave a bit, it’s best to reduce exposure. I know all this sounds like timing but that is how it is.

I would suggest not trying to buy a lot of gold (via SGB and/or ETFs) in one go. It’s best to spread your investments in gold. And since both gold SGBs and gold ETFs have their advantages and disadvantages, it makes sense to gradually use both for your long-term investments. That is, investors can hold a combination of SGBs and gold ETFs. How? You can use purchase SGBs occasionally when new series are announced and you have funds available to invest. This can be augmented by purchasing gold ETFs when there are temporary short-term corrections in gold prices (like should you buy gold when price fall 15-20%?). Or if you want to accumulate gold regularly, then do a SIP in Gold ETFs every month. Plain and simple.

One of the notes was featured by Morningstar India in their coverage of gold bonds. You can read this note here at Gold Bond investing parameters.

So that it’s about gold bonds and the Historical Issue Prices of Sovereign Sold Bonds in India (2021). I hope you found this detailed note useful.

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