Gold Bonds Scheme's 5th Tranche Opens On August 9: Check Issue Price

Sovereign Gold Bonds: The issue price is set at ₹ 4,790 per unit in the fifth tranche
Sovereign Gold Bonds: The issue price is set at ₹ 4,790 per unit in the fifth tranche

Sovereign Gold Bond 2021-22 Scheme: The fifth tranche of the government-run sovereign gold bond scheme 2021-22 opens for subscription on Monday, August 9, 2021. The fifth tranche window will be open for investors between August 9 - August 13 - for a period of five days, according to the schedule set for the gold bond scheme 2021-22 by the Reserve Bank of India (RBI). The interest-paying gold bonds are a popular means to purchase the yellow metal in a non-physical form. (Also Read: What Are Sovereign Gold Bonds? Here's All You Need To Know )

According to the RBI, an issue price of Rs 4,790 per unit, equivalent to the value of one gram of gold, is applicable for the fifth installment of the gold bond scheme 2021-22. The date of issuance for the fifth tranche is set as August 17, 2021. The issue price decided for each tranche is calculated using an average of the prices given by the Mumbai-based India Bullion and Jewellers Association (IBJA) - an industry body. After the current series, the gold bond scheme will be available for subscription for one more time.

Gold bonds are linked to the market price of the yellow metal and also offer additional returns on investment. Resident individuals, Hindu Undivided Families trusts, universities, and charitable institutions can invest in the government-run gold bond scheme. 

Sovereign Gold Bonds 2021-22 Series V: August 9-August 13; What You Need To Know

Should You Buy? Here's what experts say-

''The price for the fifth tranche of SGB is fixed at Rs 4790/gm. Investment in non-physical gold, via digital or paper gold, is highly recommended as it provides high liquidity, no storage cost, and is easier to sell vs physical gold. 

Gold prices have softened in the past few weeks to touch a one-month low. In the past one week alone, it has dropped nearly Rs 1,000/10gm in value.

Gold prices domestically and internationally have traded in a narrow range in the past few months,'' 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 methods, a discount of ₹ 50 per unit is applicable, according to the RBI. For the online subscribers, the issue price is set at ₹ 4,740 per gram of gold in the fifth tranche of sovereign gold bonds 2021-22 scheme.