Today we speak of the Sovereign Gold Bond Scheme where the Government Will Sell You Gold!
No, actually the government will sell you a bond that looks and behaves exactly like Gold, but it’s not actual gold. We spoke of it as a SoBoGoS scheme, where we added a lot of snark to explain the concept.
Read: What is the SoBoGoS Scheme?
Now we finally have a notification from the RBI about what this scheme really is:
- Buy The Gold Bond From Banks or Post Offices: Current Tranche open between Nov 5 and Nov 20, 2015.
- Min 2 grams, Max 500 grams, multiples of 1 gram
- Get a Holding Certificate
- Can be dematerialized
- In Tranches, not on Tap
- Pay according to prev week’s average price of IBJA gold
- Interest of 2.75% on invested money, half of that every six months
- Redeemed after 8 years
- After five years, can be redeemed on interest payment dates, twice a year
- Can take loans
- Tax as per LTCG like real gold
- Apply – banks, post office etc.
- No NRIs, Foreigners, Companies
Stop! Can’t You Explain Better?
Of course, which is why we have a video:
Do let us know what you think!
