Sovereign Gold Bonds: Bonds under the government's Sovereign Gold Bond programme are available for purchase till Friday, January 1, 2021. This is a ninth tranche of the gold bond scheme, which will be followed by three more instalments — which will be available for five days each — till March 2021. For the current series, an issue price of Rs 5,000 per unit is applicable. One unit is equivalent to the price of one gram of gold in the spot market. But how is this price calculated?
Here's how the SGB price is calculated:
The issue price for gold bonds is calculated using a simple average of prices provided by Mumbai-based India Bullion and Jewellers Association (IBJA).
(Also Read: All You Need To Know About Sovereign Gold Bonds)
Issue Prices Of Series I-VIII Gold Bonds
| Series (2020-21) | Dates | Issue Price |
|---|---|---|
| I | April 20 - April 24 | Rs 4,639 |
| II | May 11 - May 15 | Rs 4,590 |
| III | June 8 - June 12 | Rs 4,677 |
| IV | July 6 - July 10 | Rs 4,852 |
| V | August 3 - August 7 | Rs 5,334 |
| VI | August 30 - September 4 | Rs 5,067 |
| VII | October 12 - October 16 | Rs 5,051 |
| VIII | November 9 - November 13 | Rs 5,177 |
| IX | December 28 - January 1 | Rs 5,000 |
Closing rates of three days prior to the first day of subscription are taken into account, to arrive at this simple average.
| Date | Closing Price (Per Gram) |
|---|---|
| December 22 | Rs 5,013.90 |
| December 23 | Rs 4,985.10 |
| December 24 | Rs 4,999.50 |
| Average | Rs 4,999.50 |
| (Source: ibjarates.com) | |
For the ninth tranche of Sovereign Gold Bonds, the issue price of Rs 5,000 is calculated on the basis of gold rates of December 22-24 by IBJA.
Launched in 2015, the Sovereign Gold Bond scheme is aimed at enabling investment in non-physical gold, wherein the RBI issues bonds linked to the market price of gold on behalf of Government of India. Each unit of the bond in the SGB scheme represents the current value of a gram of gold. The bonds have a maturity period of eight years.
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