Gold Bonds Scheme's 4th Tranche Opens On July 12: Check Issue Price

Sovereign Gold Bonds: The issue price is set at ₹ 4,807 per unit in the fourth tranche
Sovereign Gold Bonds: The issue price is set at ₹ 4,807 per unit in the fourth tranche

Sovereign Gold Bond 2021-22 Scheme: The fourth tranche of the government-run sovereign gold bond scheme 2021-22 opens for subscription on Monday, July 12, 2021. According to the schedule set for the gold bond scheme 2021-22 by the Reserve Bank of India (RBI), the fourth tranche window will be open for investors between July 12 - July 16 - for a period of five days. Resident individuals, Hindu Undivided Families trusts, universities, and charitable institutions can invest in the interest-paying gold bonds. (Also Read: What Are Sovereign Gold Bonds? Here's All You Need To Know )

According to the RBI, an issue price of Rs 4,807 per unit, equivalent to the value of one gram of gold, is applicable for the fourth installment of the gold bond scheme 2021-22. The date of issuance for the fourth tranche is set as July 20, 2021. The issue price decided for each tranche is calculated using a simple average of the prices given by Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.

Gold bonds - linked to the market price of the yellow metal, have become a popular option to purchase gold in a non-physical form. Amid the COVID-19 crisis, the gold bond scheme provides a suitable solution for subscribers to invest in digital gold, as it also offers additional returns on investment. After the current series, the gold bond scheme will be available for subscription with two more tranches.

Sovereign Gold Bonds 2021-22 Series IV: July 12-July 16; What You Need To Know

Should You Buy? Here's what experts say-

“ The price for the fourth tranche of SGB is fixed at Rs 4,807/gm. The investment in non-physical gold, via digital or paper gold, is picking up pace. The high interest is on account of the recent firmness in the prices of gold in the past few weeks. 

Sovereign Gold Bond is a better alternative to physical gold as there is no risk of theft, storage charge, and to top it up it comes with an interest-bearing coupon,'' said Mr. Nish Bhatt, Founder and CEO, Millwood Kane International - an investment consulting firm. 

Discount For Online Subscribers

For those subscribers who are investing in the gold bonds scheme online, in which the payment is made through any of the digital modes, a discount of ₹ 50 per unit is applicable, according to the RBI. For the online subscribers, the issue price is set at ₹ 4,757 per gram of gold in the fourth tranche of sovereign gold bonds 2021-22 scheme.

How To Invest

The sovereign gold bonds are sold through the designated post offices, recognised stock exchanges - Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), and the Stock Holding Corporation of India Limited. Gold bonds are held in the RBI books or in a demat form.