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stockmarketanalysis · 5 months ago

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Sovereign Gold Bonds: A Comprehensive Guide

Sovereign Gold Bonds (SGBs) have emerged as a popular investment avenue for individuals looking to invest in gold without the hassle of physical ownership. Issued by the Reserve Bank of India (RBI) on behalf of the Government of India, these bonds offer a unique blend of security and returns, making them an attractive option in the financial market.

What are Sovereign Gold Bonds?

Sovereign Gold Bonds are government securities denominated in grams of gold. They are issued by the RBI on behalf of the Government of India. Unlike physical gold, which may involve storage costs and purity concerns, SGBs provide investors with an opportunity to earn returns linked to the price of gold, along with an additional interest rate.

Key Features of Sovereign Gold Bonds:

Tenure and Maturity: The maturity period of SGBs is typically 8 years, with an option to exit after the 5th year. This flexibility allows investors to plan their investments according to their financial goals.

Interest Rate: SGBs offer an additional interest rate on the initial investment amount. The rate is fixed by the Government of India and is paid semi-annually. The current rate is usually competitive compared to other fixed-income instruments.

Capital Gains Tax: If held until maturity, capital gains arising from redemption of SGBs are exempt from capital gains tax. This provides a tax-efficient way to invest in gold compared to physical gold, where capital gains tax applies.

Liquidity: SGBs are listed on stock exchanges, which enhances their liquidity. Investors can buy or sell them on these exchanges before maturity, providing liquidity that physical gold lacks.

Security: Being issued by the government, SGBs are considered a secure investment. They are backed by the creditworthiness of the Government of India, providing assurance to investors.

Subscription Periods: SGBs are issued periodically through specific subscription windows announced by the RBI. Investors need to subscribe during these windows to invest in SGBs.

Benefits of Investing in Sovereign Gold Bonds:

No Storage Hassle: SGBs eliminate the need for physical storage and associated risks of theft or loss, which is a common concern with owning physical gold.

Fixed Interest Income: Unlike physical gold, which does not generate any income, SGBs provide investors with an additional interest income, enhancing overall returns.

Tax Efficiency: The exemption from capital gains tax on redemption after maturity makes SGBs an attractive option for long-term investors seeking tax-efficient returns.

Price Appreciation: Investors can benefit from potential appreciation in the price of gold during the tenure of the bond, similar to holding physical gold.

How to Invest in Sovereign Gold Bonds?

Investing in SGBs involves a straightforward process:

Eligibility: Individuals, HUFs, trusts, universities, and charitable institutions are eligible to invest in SGBs.

Subscription: Investors can apply for SGBs through designated banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognized stock exchanges during the subscription period.

KYC: Completing the Know Your Customer (KYC) process with the issuing institution is mandatory for investing in SGBs.

Payment: Payment for SGBs can be made through cash (up to a certain limit) or demand draft or online banking channels as specified during the subscription period.

Allotment: On successful subscription, SGBs are allotted to the investor's demat account. Non-demat applications are issued physical bond certificates.

Risks Associated with Sovereign Gold Bonds:

Interest Rate Risk: The interest rate offered on SGBs is fixed at the time of issuance. Changes in interest rates in the economy can impact the attractiveness of the bond.

Market Price Fluctuations: Although SGBs aim to track the gold price, fluctuations in international gold prices can impact the market price of SGBs before maturity.

Early Redemption Risk: While SGBs allow early exits after the 5th year, investors may not receive optimal returns if they choose to redeem before maturity, depending on prevailing market conditions.

Conclusion

Sovereign Gold Bonds offer an innovative and secure way to invest in gold, combining the benefits of gold ownership with the convenience and financial benefits of a bond instrument. For investors looking to diversify their portfolio and benefit from the potential appreciation of gold prices, SGBs present a compelling investment option in India's financial market landscape. By understanding their features, benefits, and risks, investors can make informed decisions to achieve their financial objectives effectively

#finance #investing stocks #stock trading #stock #stock market

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miscdigital · 1 year ago

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Exploring the Sovereign Gold Bond Scheme and Its Benefits

In the dynamic landscape of investment opportunities, the Sovereign Gold Bond (SGB) Scheme stands out as a unique and attractive option for investors looking to add the glitter of gold to their portfolios. This government-backed initiative not only allows individuals to invest in gold but also offers a range of advantages, from financial security to flexibility in holding. In this blog, we'll delve into the Sovereign Gold Bond Scheme, eligibility criteria, the role of stockholding, and the convenience of buying gold online in India.

Understanding the Sovereign Gold Bond Scheme

The Sovereign Gold Bond Scheme, introduced by the Government of India, provides individuals with an avenue to invest in gold in a more structured and secure manner. Unlike physical gold, which comes with storage and purity concerns, Sovereign Gold Bonds are financial instruments denominated in grams of gold. These bonds are issued by the Reserve Bank of India on behalf of the Government and are listed on stock exchanges, offering investors a regulated and transparent investment avenue.

Advantages of the Sovereign Gold Bond Scheme

Safety and Security

Sovereign Gold Bonds are backed by the Government of India, ensuring a high level of safety and security for investors. This eliminates concerns related to the purity and storage of physical gold.

Earn Fixed Interest

One of the unique features of the SGB Scheme is that it offers investors a fixed annual interest rate in addition to the potential for capital appreciation. This fixed interest is paid semi-annually, providing a regular income stream.

Capital Appreciation

Investors can benefit from potential capital appreciation as the value of the bonds is linked to the market price of gold. As the price of gold rises, the value of the bonds also increases.

Liquidity and Tradability

Sovereign Gold Bonds are listed on stock exchanges, providing liquidity to investors who can buy and sell these bonds in the secondary market. This tradability adds a level of flexibility to the investment.

No Making Charges or Storage Costs

Unlike physical gold, investors in the SGB Scheme are not burdened with making charges or storage costs. This makes the investment more cost-effective in the long run.

Tax Efficiency

The interest earned on Sovereign Gold Bonds is taxable, but the capital gains arising on redemption are exempted from capital gains tax if held until maturity. This makes SGBs a tax-efficient investment option.

Eligibility for Investing in Sovereign Gold Bonds

To participate in the Sovereign Gold Bond Scheme, individuals must meet the following eligibility criteria:

Resident Individuals, HUFs, Trusts, and Universities: The scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, and universities.

Minimum and Maximum Investment: The minimum investment in Sovereign Gold Bonds is 1 gram of gold, and the maximum limit is set at 4 kilograms for individuals and HUFs in a financial year.

Lock-In Period: The initial lock-in period for Sovereign Gold Bonds is five years. However, investors have the option to exit prematurely after the fifth year on interest payment dates.

The Role of Stockholding

Stockholding plays a crucial role in the Sovereign Gold Bond Scheme as these bonds are listed on stock exchanges. Investors can buy and sell Sovereign Gold Bonds through stockholding platforms, ensuring a transparent and regulated market for these financial instruments.

Buying Gold Online in India

The convenience of buying gold online in India has been further enhanced with the Sovereign Gold Bond Scheme. Investors can purchase these bonds through authorized banks, financial institutions, post offices, and designated stockholding platforms, making the process seamless and accessible.

Conclusion

The Sovereign Gold Bond Scheme offers a compelling investment avenue for those looking to diversify their portfolios with the timeless allure of gold. From the safety and security of government backing to the convenience of buying and selling through stockholding platforms, this scheme provides a host of benefits for investors seeking a balanced and secure investment option.

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anushagupta · 1 year ago

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Exploring the Investment Landscape: SGBs vs. Gold Mutual Funds

Introduction:

The world of investment is ever-dynamic, and there are many investment opportunities that one can indulge in to grow their wealth. Among these investment avenues available for you there are Sovereign Gold Bonds (SGBs) and Gold Mutual Funds. These two investment tools have been heavily popular among investors. After all, there is a timeless golden appeal and a golden opportunity. Today, we will dive into the world of SGBs and Gold Mutual Funds investments, taking into account what they have to offer to investors.

Understanding SGBs:

Sovereign Gold Bonds (SGBs) are financial instruments issued by the Government of India, providing you with an alternative way to invest in gold. These bonds are denominated in grams of gold and are linked to the prevailing market price of the precious metal. One of the key advantages of SGBs is that they offer an attractive interest rate, providing you with an additional income stream on top of potential capital appreciation.

SGBs come with a fixed tenure, typically ranging from 8 to 12 years, and they can be traded on the stock exchanges. You can also benefit from the potential for capital gains if the market price of gold rises during the tenure of the bond. Additionally, SGBs enjoy certain tax benefits, such as exemption from capital gains tax on redemption if held until maturity.

Understanding Gold Mutual Funds:

On the other hand, Gold Mutual Funds are investment funds that pool money from multiple investors to invest in various forms of gold, such as physical gold, gold ETFs (Exchange-Traded Funds), and gold mining companies. These funds are managed by professional fund managers who make strategic investment decisions on behalf of the investors.

Gold Mutual Fund online offers liquidity and diversification, as the fund's portfolio may include a mix of gold-related assets. The value of the mutual fund online is directly linked to the performance of the underlying gold assets. You can buy and sell units of the fund at the Net Asset Value (NAV), providing flexibility and ease of transactions.

Comparing the Two:

1. Nature of Investment:

- SGBs involve the purchase of government-issued bonds linked to the price of gold.

- Gold Mutual Funds invest in a portfolio of gold assets, providing diversification.

2. Returns and Income:

- SGBs offer fixed interest rates, providing you with regular income in addition to potential capital gains.

- Gold Mutual Funds investments generate returns based on the performance of the underlying gold assets, and you may earn through capital appreciation and dividends.

3. Liquidity:

- SGBs have a fixed tenure, and premature withdrawal may incur penalties.

- Gold Mutual Funds offer daily liquidity, allowing you to buy or sell units at the prevailing NAV.

4. Tax Implications:

- SGBs provide tax benefits such as exemption from capital gains tax on maturity.

- Gold Mutual Funds are subject to capital gains tax based on the holding period.

5. Risk Profile:

- SGBs carry sovereign risk but are considered relatively safer due to the backing of the government.

- Gold Mutual Funds are subject to market risks and the performance of the underlying gold assets.

Conclusion:

In conclusion, both SGBs and Gold Mutual Funds offer unique advantages and cater to different investor preferences. SGBs are suitable for those seeking a combination of fixed income and exposure to gold, with the added benefit of government backing. On the other hand, Gold Mutual Funds provide flexibility, liquidity, and diversification for investors looking to participate in the gold market without directly owning physical gold.

Ultimately, the choice between SGBs and Gold Mutual Funds depends on individual financial goals, risk tolerance, and investment horizon. As with any investment decision, it is advisable to consult with a financial expert to align your investment strategy with your specific needs and circumstances.

#online mutual funds #mutual funds #mutual fund investment

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hariputra · 1 year ago

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What are Sovereign Gold Bonds?

Sovereign Gold Bonds (SGBs) are a financial instrument issued by the Government of India as a means for individuals to invest in gold without owning physical gold. These bonds were introduced by the Reserve Bank of India (RBI) on behalf of the Indian government. Here are the key features and details of Sovereign Gold Bonds:

Government-backed: SGBs are issued by the Government of India, making them a safe and secure investment option. They are backed by the sovereign guarantee, which means that the government ensures the repayment of the principal amount at maturity.

Denominated in grams of gold: SGBs are denominated in grams of gold, which means investors know exactly how much gold they will receive at maturity. The minimum and maximum investment limits are specified in grams.

Fixed interest rate: SGBs offer a fixed rate of interest on the initial investment amount. The interest is paid semi-annually, and the rate is announced by the government before each tranche of bonds is issued.

Tenure: The tenure of Sovereign Gold Bonds is typically 8 years, with an option to exit after the 5th year. However, these bonds can be traded on stock exchanges after a certain lock-in period.

Liquidity: After the lock-in period, SGBs can be traded on stock exchanges, providing liquidity to investors who want to exit their investment before maturity.

Tax benefits: SGBs have certain tax benefits. The capital gains tax on redemption is exempt if the bonds are held until maturity. Additionally, the interest income from these bonds is taxable under the Income Tax Act, but it is eligible for indexation benefits.

Nominal and real returns: SGBs provide returns in two ways: the fixed interest rate and the potential for capital appreciation if the price of gold rises during the investment period. This can provide both nominal and real returns to investors.

Collateral for loans: SGBs can be used as collateral for obtaining loans from banks and other financial institutions.

Redemption and premature exit: Investors can redeem the bonds at the end of the tenure (8 years) or on specified early redemption dates. These early redemption dates are typically on the 5th, 6th, and 7th years from the issue date. Early exit is subject to a capital gains tax if sold before the 5th year.

Issuance: SGBs are typically issued in multiple tranches throughout the year. Investors can apply for them through banks, designated post offices, or via online platforms during the specified subscription period.

Sovereign Gold Bonds offer an attractive way to invest in gold for individuals who want to diversify their investment portfolio and earn returns on their gold holdings. However, it's essential to understand the terms and conditions associated with these bonds, including the lock-in period and tax implications, before investing.

#sovereign gold bonds

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remitanalyst · 1 year ago

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What is the Sovereign Gold Bond Scheme by RBI, and How to Invest in It?

Sovereign Gold Bond (SGB) schemes represent a government-backed initiative where gold serves as the underlying asset for these securities. They serve as an attractive alternative to physical gold ownership. Investors are required to make a cash payment at the time of issuance, and upon maturity, they receive the redemption amount in cash. The Reserve Bank of India (RBI) administers the issuance of these bonds on behalf of the government.

Advantages of the Scheme Investors benefit from the protection of the value of the gold they purchase, as they receive the prevailing market price upon redemption or premature redemption. SGBs offer a more secure option compared to storing physical gold, reducing associated risks and expenses. At maturity, investors are assured of receiving the market value of gold along with monthly interest. Importantly, SGBs do not carry the typical complications associated with gold jewelry, such as wastage and making charges.

Eligibility SGBs are open to Indian residents, including individuals, trusts, Hindu Undivided Families (HUFs), universities, and charitable institutions. Individual investors who change their status to Non-Resident Indian (NRI) can continue to hold their SGBs until maturity or redemption.

Scheme Tenure SGBs have an initial 8-year term, with investors having the option to exit in the fifth, sixth, or seventh year.

Joint Holding The RBI permits joint holding of SGBs.

Minimum and Maximum Investment Limits Individuals can invest a minimum of one gram and a maximum of four kilograms. The minimum investment is consistent across all entities, but for HUFs, the maximum limit is four kilograms, and for trusts and similar entities, it is twenty kilograms. In cases of joint ownership, the limit applies only to the primary applicant. The annual investment ceiling encompasses bonds subscribed to during the government's initial issuance and those acquired in the secondary market. Investments made as collateral with banks and other financial institutions are excluded from this limit.

Redemption Amount Upon maturity, Gold Bonds are redeemed in Indian Rupees, with the redemption price based on the average closing price of 999 pure gold over the preceding three business days, as reported by the India Bullion and Jewellers Association Limited. Interest and redemption proceeds are credited to the customer's specified bank account. Investors are notified one month prior to the bond's maturity. Any changes in account details or contact information must be promptly communicated to the bank/SHCIL/Post Office.

Premature Encashment Despite the 8-year term, early withdrawal is possible on coupon payment days starting from the fifth year of issuance. Bonds can also be transferred to another eligible investor. Requests for early redemption should be made to the relevant bank/SHCIL office/Post Office/agent at least thirty days before the coupon payment date. RBI considers early redemption requests only if the investor visits the respective bank or post office at least one day before the coupon payment date. The redeemed funds are deposited into the customer's designated bank account as specified during the initial bond application.

Risks There is a risk of capital loss if the market price of gold declines. However, investors retain ownership of the gold units they have purchased.

Bond Pricing The principal amount of Gold Bonds is denominated in Indian Rupees, determined by the simple average of the closing price of 999 purity gold announced by the India Bullion and Jewelers Association Limited during the last three business days of the week preceding the subscription period.

Tax Implications Interest earned on the bonds is subject to taxation. Capital gains tax on SGB redemption has been waived. Long-term capital gains resulting from bond transfers are eligible for indexation benefits. TDS (Tax Deducted at Source) does not apply to the Bond, but bondholders are responsible for complying with tax regulations.

Application Process Customers can apply online through the websites of scheduled commercial banks, listed below. For online applications with digital payments, the Gold Bond price is discounted by Rs. 50 per gram from the nominal value. Application forms are available at issuing banks, SHCIL offices, designated Post Offices, and through agents. Additionally, they can be downloaded from the RBI's website. Some banks also offer online application services.

In conclusion, the Sovereign Gold Bond scheme represents a secure and low-risk investment opportunity designed to offer investors the prospect of substantial returns. For those seeking financial stability and future investment potential, this scheme should be a consideration.

#SelfImprovement #WorkLifeBalance #Productivity #TimeManagement

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india7d · 1 year ago

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Sovereign Gold Bonds in India: A Golden Opportunity for Investors

Introduction Gold has always been an integral part of India's culture and economy. Traditionally, Indians have been investing in physical gold as a means of wealth preservation and an auspicious asset for various occasions. Recognizing the potential of gold as an investment avenue, the Indian government introduced the Sovereign Gold Bond (SGB) scheme in 2015. The scheme aims to provide an alternative to physical gold, offering investors the benefits of owning gold in a dematerialized form. In this article, we will delve into the concept of Sovereign Gold Bonds in India, exploring their features, advantages, and contribution to the nation's financial landscape. Understanding Sovereign Gold Bonds Sovereign Gold Bonds are government-issued securities denominated in grams of gold. They are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds allow individuals, Hindu Undivided Families (HUFs), trusts, and other eligible entities to invest in gold without the need for physical possession. Investors can subscribe to SGBs during specified issuance windows, which are typically held several times throughout the year. Features of Sovereign Gold Bonds - Tenure and Interest: Sovereign Gold Bonds typically have a maturity period of 8 years, with an exit option available after the 5th year. Investors receive a fixed annual interest on their investment, currently set at 2.50% per annum. The interest is payable semi-annually, providing investors with a regular income stream. - Denomination: The bonds are issued in various denominations to cater to different investment needs. The minimum investment is usually set at 1 gram of gold, and the maximum investment is capped to ensure broader participation and prevent concentration of assets. - Tradable: SGBs are listed on recognized stock exchanges, making them tradable on the secondary market. Investors can buy or sell these bonds on the exchange if they wish to exit before the maturity period. The market price of the bond is influenced by various factors, including the prevailing gold prices, interest rates, and demand for gold as an investment. - Tax Benefits: One of the key advantages of investing in Sovereign Gold Bonds is the tax benefits they offer. The capital gains tax arising from redemption is exempted if the bonds are held until maturity. Moreover, the indexation benefit is provided to individuals for long-term capital gains tax calculation if the bonds are sold before maturity. Advantages of Investing in Sovereign Gold Bonds - Safety and Security: Sovereign Gold Bonds are backed by the Government of India, making them one of the safest forms of gold investment. Unlike physical gold, there is no risk of theft or storage-related issues. - No Making Charges or Wastage: When purchasing physical gold, buyers often incur additional expenses in the form of making charges and wastage. With SGBs, investors avoid these extra costs, thereby maximizing their investment returns. - Inflation Hedge: Gold has historically acted as a hedge against inflation, preserving the purchasing power of investors during times of economic uncertainty. - Financial Inclusion: The introduction of Sovereign Gold Bonds has promoted financial inclusion by allowing even small investors to participate in the gold market. This has encouraged a shift from unorganized gold investments to a regulated and transparent investment avenue. - Reducing Gold Imports: India is one of the largest consumers of gold globally, and a significant amount of foreign exchange is spent on gold imports. By encouraging investments in SGBs, the government aims to reduce the reliance on gold imports and stabilize the current account deficit. - Sovereign Backing: The government's guarantee on these bonds provides reassurance to investors, attracting them towards a more formal and transparent investment avenue. Conclusion Sovereign Gold Bonds have emerged as a popular investment choice in India, catering to the cultural affinity for gold while aligning with the nation's financial objectives. The scheme has provided an attractive alternative to physical gold, encouraging individuals to invest in a regulated and secure manner. With the tax benefits, interest income, and potential for capital appreciation, Sovereign Gold Bonds offer a compelling proposition for both seasoned and novice investors alike. As the Indian economy continues to evolve, these bonds are expected to play a crucial role in shaping the financial landscape, channeling household savings, and contributing to the nation's economic growth. Investors are advised to consult with financial experts to determine how Sovereign Gold Bonds fit into their overall investment strategy, keeping in mind their financial goals and risk tolerance. Read the full article

#SovereignGoldBondsinIndia:AGoldenOpportunityforInvestors

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rr-finance · 1 year ago

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Investing in Sovereign Gold Bonds: A Lucrative Opportunity for Savvy Investors

In recent years, as investors have sought alternative avenues to diversify their portfolios, Sovereign Gold Bonds (SGBs) have emerged as an attractive investment option. Introduced by the Government of India, SGBs offer individuals the opportunity to invest in gold without the hassle of physical possession, making them a convenient and secure investment instrument. In this blog post, we will delve into the world of Sovereign Gold Bonds, exploring what they are, their benefits, and why they have become a popular choice among investors.

What are Sovereign Gold Bonds?

Sovereign Gold Bonds are financial instruments issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds are denominated in grams of gold, with a minimum investment requirement of one gram. They are designed to track the price of gold, allowing investors to benefit from the appreciation in gold prices over time. SGBs offer a fixed rate of interest, which is paid semi-annually to bondholders, in addition to the potential capital gains upon maturity.

Benefits of Investing in Sovereign Gold Bonds:

Safety and Security: Unlike physical gold, SGBs eliminate the risk of theft, loss, or damage associated with storing and safeguarding physical gold assets. The government guarantees the redemption of these bonds at the prevailing market price upon maturity, ensuring the safety of your investment.

Attractive Returns: Sovereign Gold Bonds not only offer potential capital appreciation based on the prevailing gold prices but also provide an annual interest rate on the investment amount. This dual benefit makes SGBs a compelling investment option, especially during periods of rising gold prices.

Tax Efficiency: One of the significant advantages of investing in Sovereign Gold Bonds is their tax efficiency. The interest earned on these bonds is taxable as per the investor's income tax slab, but there is no capital gains tax levied upon redemption. Moreover, if held until maturity, the gains from SGBs are exempt from wealth tax.

Liquidity and Tradability: Sovereign Gold Bonds are listed on recognized stock exchanges, making them highly liquid. Investors can trade these bonds on the secondary market, enabling them to exit their investment before maturity if needed. The ease of tradability makes SGBs a flexible investment option.

Diversification: Investing in gold through SGBs allows individuals to diversify their investment portfolio. By including an asset class like gold, which typically has a low correlation with traditional equity and debt instruments, investors can potentially reduce the overall risk and volatility of their portfolio.

Conclusion:

Sovereign Gold Bonds have gained popularity among investors due to their safety, attractive returns, tax efficiency, liquidity, and ability to diversify portfolios. They provide a convenient way to invest in gold without the challenges associated with physical possession. As with any investment, it is essential to thoroughly understand the terms and conditions, the risks involved, and consult with a financial advisor to determine if Sovereign Gold Bonds align with your investment objectives. With their unique features and benefits, SGBs offer a compelling proposition for both seasoned and novice investors looking to capitalize on the potential of gold as an investment asset.

Source :- https://rrsfinance.wordpress.com/2023/06/12/investing-in-sovereign-gold-bonds-a-lucrative-opportunity-for-savvy-investors/

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finance76 · 2 years ago

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Reasons to invest in Sovereign Gold Bonds

Indians are the highest consumer of gold after China. The penchant for gold is multidimensional in Indian households. It is considered a status symbol and represents generational wealth. This makes it the ideal choice or ornament for possession and investment purpose. Despite the demand, India does not have many gold reserves, ironically. The supply is satiated through imports. As a result, it affects the macro fundamentals of the economy.

This consecutively affects the currency. The Indian government proposed the issuance of Sovereign Gold Bonds to address this issue. The Reserve Bank of India issues it periodically at the ongoing gold price. You can make an SGB application for a minimum of a gram and multiples. Investing in such precious metals is an intelligent way for future gains. Let us understand why this investment approach makes sense:

Affordable

When you buy and sell jewellery physically, you incur making charges. You need to pay them each time you change the gold form. Another alternative is holding them as bars and coins. However, you may incur costs related to storage, Insurance, safety, etc. These issues get eliminated with Bonds. You could hold them as share certificates or in your Demat Account.

Tax-efficient

Gold is a non-financial asset. Hence, you may need to pay short-term capital gains tax when you sell it within three years. If you sell it after three years, it is classified as long-term capital gains. Hence, you get taxed at 10% without indexation or 20% with the indexation benefit. You also need not go through such taxation when you hold gold as Government Bonds.

In such a case, it comes with an eight-year tenure and is redeemable after five years. However, you attract capital gains at the actual rates when you sell SBGs in the secondary market.

Collateral usage

Gold is an excellent way to acquire credit. It was used as an asset for pledging security. The same is possible with gold Bonds traded today. They are collateral, and the Loan-to-Value ratio is like ordinary Gold Loans. The Reserve Bank of India prescribes this often. However, granting such credit against SGBs is up to the discretion of financial institutions. Ensure to check its availability.

Interest-bearing

No regular assured income exists when gold is held physically or as Exchange-Traded Fund. You only gain when the gold market price of gold is high. Contrarily, types of Bonds dealing with gold pay an annual interest of 2.5% to investors. If the gold prices go up, you gain from the price appreciation. Also, there are no risks as the Indian government regulates interest payments and principal redemption.

#Sovereign Gold Bond #bonds

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parasramgroup · 2 years ago

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Sovereign Gold Bonds (SGBs)

Gold sovereign bonds SGBs are government securities issued by the Reserve Bank of India (RBI) and denominated in gram(s) of gold. They are issued in multiples of gram(s) of gold with a minimum investment of 1 gramme.

Availability SBGs are offered for auction on dates stated by the central government. These bonds are issued by the RBI multiple times a year. You must have a PAN Card to buy an SGB. You can buy SGBs from banks, post offices, stock brokerage companies both online and offline. Amount of Investment Each bond unit you purchase has the value of one gramme of pure gold based on gold’s average closing price of the previous three business days. You can purchase a maximum of 4 kgs of SGBs for individuals and 20 kgs for trusts. You presently receive a discount of INR 50 on each gramme purchased online. ROI (Return on Investment) 2.5% paid twice a year. Maturity Eight years. Early redemption after five years. Taxation Interest payments are taxed based on your tax slab. Any gains made at maturity are free from tax. Risk Level: Low to medium

#gold #stock #market #investment #parasram

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rnewspost · 2 years ago

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Sovereign Gold Bonds: Redemption of sovereign gold bonds expected to spike in FY24

Redemption under the government’s sovereign gold bond scheme is expected to jump five times from the FY23 level to ₹1,500 crore next fiscal, officials said. Investors would resort to greater redemptions next fiscal to take advantage of the elevated gold prices once the initial lock-in period is over for many of them. The scheme was launched in November 2015, as part of the government’s efforts to…

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miscdigital · 1 year ago

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Exploring the Sovereign Gold Bond Scheme and Its Benefits

Understanding the Sovereign Gold Bond Scheme

Advantages of the Sovereign Gold Bond Scheme

Safety and Security

Sovereign Gold Bonds are backed by the Government of India, ensuring a high level of safety and security for investors. This eliminates concerns related to the purity and storage of physical gold.

Earn Fixed Interest

Capital Appreciation

Investors can benefit from potential capital appreciation as the value of the bonds is linked to the market price of gold. As the price of gold rises, the value of the bonds also increases.

Liquidity and Tradability

No Making Charges or Storage Costs

Unlike physical gold, investors in the SGB Scheme are not burdened with making charges or storage costs. This makes the investment more cost-effective in the long run.

Tax Efficiency

Eligibility for Investing in Sovereign Gold Bonds

To participate in the Sovereign Gold Bond Scheme, individuals must meet the following eligibility criteria:

Resident Individuals, HUFs, Trusts, and Universities: The scheme is open to resident individuals, Hindu Undivided Families (HUFs), trusts, and universities.

Minimum and Maximum Investment: The minimum investment in Sovereign Gold Bonds is 1 gram of gold, and the maximum limit is set at 4 kilograms for individuals and HUFs in a financial year.

Lock-In Period: The initial lock-in period for Sovereign Gold Bonds is five years. However, investors have the option to exit prematurely after the fifth year on interest payment dates.

The Role of Stockholding

Buying Gold Online in India

Conclusion

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kabane52 · 5 years ago

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The Doctrine of Restitutionary Atonement in Light of Tradition

This post is intended to demonstrate the concord between the so-called doctrine of “satisfaction” of debt on our behalf by Christ and the doctrine of the Fathers concerning the ontological consequences of the death of the Incarnate God. Unfortunately, the word “satisfaction” seems to be nigh-universally taken today to mean something like “appeasement”, where divine anger is appeased through suffering. In reality, Anselm uses the word to mean “reparation” or “restitution” in a positive sense. A person makes satisfaction for a debt when what is owed is paid in full. According to the teaching of Anselm, man has the duty to God to act righteously. The work of atonement is not accomplished by Christ’s receipt of the Father’s anger. Rather, it is accomplished by the Father’s receipt of Christ’s goodness. That is the sense in which “satisfaction” is meant: a work of love so infinitely good that it makes up for the bad.

Before beginning, I wish to make some preliminary remarks about the nature of this language. First, the language of debt and reparation is eminently scriptural. In fact, scripture is suffused with this imagery. For example, according to Isaiah 53 the messianic servant in His atoning work carries out a “reparation offering.” A reparation offering must be carried out if one has trespassed upon that which is God’s without God’s entrustment and permission. If one trespasses on that which is too holy, one is elevated ritually to that degree of holiness. Such is dangerous for a person who has not adequately prepared. As such, he must be ritually “de-sanctified.” To be in a state of consecration means that one owes certain services to God as a consequence of the new relationship created. If one cannot render those services, one is committing robbery. Thus, there is a rupture between what one is ordered towards in virtue of one’s office and that which one acts to fulfill. This rupture creates a gap which must be bridged by reparation. This is what Christ accomplishes for mankind in the work of atonement. Mankind had trespassed upon what was forbidden, creating the rupture of death. In the entirety of His self-consecration in hypostatic union with human nature, our Lord bridged the gap between the proper end of human nature and the actual direction in which human activity tended. The bridging of this gap restored communion with God and overcame death.

Where else can we find the scriptural teaching concerning restitution? The ubiquity of the language of wealth and investment in describing the spiritual life similarly reflects this important aspect of Christ’s work. The glory of God which belongs to the Divine Trinity and given to mankind through the incarnation is called by the Apostle Paul the “riches of His glory.” The Apocalypse utilizes the same imagery. In its visionary description of the false liturgical cult of apostate Israel, St. John refers to their penalty on Christians in the prohibition on “buying and selling.” Christ signifies the spiritual state of the respective local Churches by using the language of wealth: the faithful Church of Smyrna is “rich” (2:9) while the dying Church of Laodicea is “wretched, pitiable, poor, blind, and naked” (3:17). Redemption is signified by an economic transaction, according to our Lord: “I counsel you to buy from me gold refined by fire” (3:18). Such imagery is rooted in the prophetic word, as Isaiah describes the messianic supper as marked by the invitation to “buy wine and milk without money and without price” (55:1). In the opening words of Isaiah, Israel’s apostasy is symbolized as devaluation: “your silver has become dross” (1:22). In the parables of Jesus, we also find investment holding an important place. The prodigal son is given the wealth of his inheritance only to squander it. The master entrusts his servants with talents in order to obtain an increase on their value through investment (Matthew 25:15-28) and forgiveness is signified by the pardon of a debt.

The importance of this imagery is noted by St. Seraphim of Sarov who reminds us of the connection of the grace of the Holy Spirit with money in the Holy Scriptures. Pointing especially to the words of the Lord in Luke 19:13 (”trade until I come”), St. Seraphim teaches us that the Spirit of God is that which is given to us as wealth to be increased and fortified by works of charity in order to achieve communion with God through Jesus Christ in the life of the Spirit. This is the essence of the concept of restitutionary atonement. The uncreated divine operations are the mode of interpersonal communion among Father, Son, and Spirit. The divine operations realize the one nature shared by the divine Persons in a mode proper to each hypostasis. In other words, it is always the persons who act, and their activity is always in relation to the other divine Persons. For example, the love of God is operative in the Father’s total love for the Son and the mutuality of that love for the Son with the Spirit. The Son, receiving the love of the Father through the Holy Spirit, reciprocates that love by the same Spirit.

Let us then consider the operations as wealth and treasure. God, being infinite, has in Himself an actually infinite plenitude of divine operations. In the relationship of Father and Son, then, consider it in the language of inheritance and consecration. The Father gives the entirety of His treasury of grace to the Son as an inheritance. The Son receives this treasury and utilizes it in consecration to the honor of His Father. This is the critical dynamic which must be understood: the scriptural and theological language about wealth, debt, and reparation is intended to elucidate what is a fundamentally personal and filial bond between God and mankind. A requisite “translation” of the ontological and metaphysical teaching on human deification through Christ into the biblical and symbolic teaching about the restitution of debt by Christ on man’s behalf demands a full assimilation of this governing principle.

All of that said, the following was written yesterday in personal messages to a friend who had asked about this issue.

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The foundational idea is that Adam is created with an intrinsic relationship and bond with God. Adam owes his existence to God and is thus naturally indebted to him but because Adam exists in precisely the mode willed by God, his life constitutes a link between God and man wherein exactly what Adam owes to God is wholly consecrated and paid to God. Adam owes his own existence to God, Adam is sovereign over his body and orders by his will his existence to God and maintains financial balance.

What occurs in the fall is that Adam doesn’t pay his debt. He directs his activity to something other than God, thereby severing the bond which had existed up to that point and falling into an infinite state of debt. The reason that the debt is infinite is because a “debt” signifies the gap between the proper form of a relationship and the actual constitution of that relationship. You ought to be in X financial standing with respect to Person A, but you’re not. The difference between those two is your debt.

Adam’s debt is infinite because having been severed from God’s bond of life with him, the proper reordering of that relationship demands that Adam repair the bond which was broken. Since the distance between infinity and finitude is infinite, the debt which is owed is infinite. The only way in which mankind can be saved is if a son of Adam with access to an infinite treasury and perfect sovereignty over that treasury uses his key and consecrates the infinite treasury to the one God. With an infinite plenitude of riches, the infinite debt is paid. Ontologically, that means that the distance created in the rupture of the fall is bridged and communion between God and man restored.

When we are joined to Christ, we can please God by the Holy Spirit despite the imperfections in each and every one of our works of charity. How? First, because that wealth (a work of love is signified as a portion of wealth) which belongs infinitely to the Son (in the infinite plenitude of graces, divine operations) is shared with us through the incarnation. We participate really in the activity of the Son through the Spirit and are made capable of directing divine activity to our freely chosen end/goal. So we are joined to the riches of Jesus Christ and in working with divine energy we grasp a portion of those riches and direct it towards consecration to God. This is an act which authentically pleases God.

But because each good deed has an imperfection, there’s still a problem. Because the distance between infinite perfection and slight imperfection is infinite, a good work carried out imperfectly creates again the infinite debt. However, the difference is that our good works are carried out “in Christ.” As Paul says, “I have been crucified with Christ.” Because the operation by which we consecrate a portion of the Son’s treasury to the Father is the very same operation by which the Son made infinite restitution, our working the work of Christ by the Spirit contains internal to its nature the reparation of any debt created by imperfections major or minor.

This describes what occurs ontologically in the relationship of sin to death and the Spirit. Sin, however slight, objectively orders a person away from the fullness of existence proper to his nature. As such, corruption and a process of disintegration invariably follows. Because of sin, we must die. A work of love, if it contains an imperfection, produces death in us. This is why “I have been crucified with Christ; it is no longer I who live but Christ who lives in me” is absolutely necessary. In being joined to Christ’s death, the death which belongs necessarily to any imperfection has been accomplished and carried out in that very union. Death destroys the flesh. That which is impermanent and imperfect is destroyed in death. Fire comes and burns the leaves but brightens the precious metals. Thus in co-operating with the Holy Spirit who acts in us to integrate us into the cross and glory of Jesus, our works of charity are pulled through the cross: all imperfections are thereby removed and the work itself is perfected. Thus in view of the cross our good works are authentically pleasing to the Father.

In short, the Latins [referring principally to the Latin tradition of the first millennium] take a good work in this context to be a consecrated gift of treasure to our Father. The Greeks take the good work to be that which belongs properly to the life of God so that our work of love is an instance of the intrinsic end of the human person, participation in the life of God. The giving of a gift of treasure to the Father in the West is described in the East as partaking in communion with the Father through the uncreated graces/energies. The Latins take the imperfection to be an infinite debt defining the God-man relationship until its reparation. The Greeks take the imperfection as constituting the infinite gap between sharing in the life of God and attaining full actuality on the one hand and the tendency towards death and nonexistence on the other. The Latins take the cross of Christ as being that where the incarnate Son utilizes His treasury of infinite wealth (merit) in consecration to the Father, infinity overcoming infinity and dissolving the debt. The Greeks take the cross as being that where the Son’s infinite actuality and immortal life permeates the nonexistence and dissolution of death, thereby filling death with life and healing the rift between God and man.

Most significantly, the Eucharist is an economic act at its liturgical core. The Eucharist is that event wherein the human family is constituted in its proper internal, corporate relationship and where it is properly ordered with respect to God the Creator in a dyadic motion of procession and reversion. The Holy Spirit comes forth to constitute the Gifts as the Body of Christ, simultaneously incorporating us into that Body as we revert into the infinite presence of God. This is the act where we are subject to God as children of our Father in Heaven. It is in the immediate context of the bringing forth and consecration of the Eucharistic Elements that the Church consecrates its tithe to God on the altar of Eucharist. The tithe is of wealth as it signifies the ordering of everything produced by the work of our hands towards the service of God in Jesus Christ. God gives the creation as gift to man. Man receives the creation and adds to it his labor. This produces an increase of value represented in the production of income. A ten percent tithe on that increase is the ritual affirmation that God as Creator has given us everything which permitted the production of this wealth. As such, it is the essence of the mystery of the Eucharist: it is our “giving of thanks” for the creative gift of God and our joining our own labor to His holy work.

But the fact that we add our tithes to the Eucharist only after the Eucharist has been consecrated demonstrates the central truth that the only way in which those things that we order towards God actually stand as a pleasing aroma to Him is through their being joined to the offered Body of Christ. It is the divine Son incarnate who receives the creation from the Father and consecrates it in its totality to Him in a procession of thanksgiving on Calvary. “Thine own of thine own, we offer unto thee on behalf of all and for all.” The creation received by the Son through the incarnation is returned entirely to the Father in the passion of the Lord Jesus, for it is in the Passion that the Last Adam declares His intent to utilize the gift of creation in a manner wholly consistent with the will of the Giver, that is in utter fidelity to the Father and in supreme love for all mankind.

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new-haryanvi-ragni · 2 years ago

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remitanalyst · 1 year ago

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