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Apply for the latest Sovereign Gold Bond issue or buy old tranches listed on the exchange? Here's wh
The latest tranche of Sovereign Gold Bond (SGB) Scheme 2022-23 - Series IV will close today, March 10, 2023. This is the last tranche of SGBs for this fiscal, which was issued at Rs 5,611 per gram of gold. But do you know that these bonds can be bought even after their last date? This is because there are two ways of buying SGBs: primary issuance by the Reserve Bank of India (RBI) and in the secondary market on stock exchanges such as the NSE and BSE. The question arises should we apply for the new issue or buy the old tranches listed on the exchange?
First things first. What sets SGB apart from other modes of digital gold is the fact that it also offers an interest rate of 2.50 per cent per annum, which is credited semi-annually. At the time of maturity, the gold value at current market prices is returned along with the interest income. For example; if the gold price is Rs 50,000 per 10 gms and after 8 years if it reaches Rs 60,000 then apart from the gain of Rs 10,000, you will also get an interest of around Rs 1,250 every year amounting to Rs 10,000 over the course of 8 months.