Should you buy existing or new Sovereign Gold Bonds?

New series launch

The third series of Sovereign Gold Bonds (SGBs) 2023-24 is open for subscription until December 22, 2023.

The bonds are priced at Rs 6,199 per gram of gold

You get a further Rs 50 per gram discount for those who apply online and use a digital mode of payment.

Existing SGBs may be available at a discount

SGBs with similar maturity in the secondary market can be available at discounted prices.

Example

The current market rates for some of the existing SGBs with similar maturity profiles are available for Rs 6,114 per gram only.

Why are existing SGBs available at a discount?

There are often fewer buyers in the market, so low demand brings down prices.

Note of caution

Tax: You’ll be taxed if you sell your investment before its maturity date

Our take

- Gold is not a great investment. It grew just 8% in the last decade - But if you must, buy SGB (Continued)

Finally

Always look at the SGB prices in the secondary market before subscribing to a new series. They may offer discounts.

Thanks for Reading!