7 Reasons To Invest In The Sovereign Gold Bonds 2022-23 (Series IV)

The Sovereign Gold Bonds 2022-23 (Series IV) will be opened for subscription during the period March 06-10, 2023 with Settlement date March 14, 2023. The issue price of the Bond during the subscription period shall be Rs 5,611 (Rupees Five Thousand Six Hundred Eleven only) per gram, as also published by RBI in their Press Release dated March 03, 2023.

Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50, per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 5,561 per gram of gold.

Here are 7 reasons to be buying into the Sovereign Gold Bonds

Reason 1: Sovereign Gold Bonds 2022-23 track gold prices, so you can get the price of gold.

Reason 2: There is unlikely to be a problem with theft like physical gold, as they are in electronic form.

Reason 3: You get 2.5% interest on the sovereign gold bonds.

Reason 4: They can be easily sold, as they are traded on the exchanges.

Reason 5: There is no capital gains on SGBs, if sold after eight years.

Reason 6: You can pledge these bonds to take a loan.

Reason 7: Since it is issued by the government there is no risk of default.

Gold prices set to gain

Over the longer term, we have seen that gold prices tend to give very good returns, which is one more reason to invest in the Sovereign Gold Bonds 2022-23. Also, if the holding period is more than 8 years there is no capital gains tax that is applicable. Since the gold bonds are held in the electronic form, there is no need to incur locker charges and there is no question of theft either. Overall, if you are a buyer of physical gold, it is better to move money to other forms of investment like the Sovereign Gold Bonds 2022-23 (Series IV).

Also, gold ETFs is another good option that investors have that tend to track gold prices, but, here you do not receive any interest rate. Apart from this, gold is also a good hedge against the economy and stocks. In fact, investors should diversify with at least some amount of their holdings in gold and related assets. Therefore, considering the various advantages, it makes sense to invest in the Sovereign Gold Bonds 2022-23 (Series IV).