Sovereign Gold Bond SGB February 2024

The first Sovereign Gold Bond of 2024 (SGB 2023-24 Series IV) is going to open for subscription on February 12th, 2024. In this post, I will walk you through the details of the Sovereign Gold Bond SGB February 2024, including the issue date and price. Besides, I will explain how SGB works and how you can buy SGB online.

Sovereign Gold Bond SGB February 2024: Issue Date, Price, and Other Details

The Sovereign Gold Bond 2023-2024 Series IV has a Subscription period of February 12th, 2024, to February 16th, 2024. The date of issuance has been set to February 21st, 2024. Individuals are allowed to buy SGB from 1gm to 4kg. As far as the interest rate goes, it's set to 2.5% per annum. The issue price per gram is yet to be announced.

What's a Sovereign Gold Bond?

While physical gold is considered India's most stable financial asset, it's vulnerable to theft. Hence, you may need secure storage to store gold at home. It was like this until November 2015, when the Government of India introduced the SGB or the Sovereign Gold Bond.

The whole point was to provide individuals with a better alternative to physical gold. Since then, the demand for physical gold has diminished considerably. Most importantly, SGBs are considered safe since they are government securities. You can buy an SGB from a SEBI-authorized agent or broker.

Sovereign Gold Bond Benefits

There are several benefits of investing in Sovereign Gold Bonds, and here are some of them:

  • Compared to Physical Gold, you don't need a secure store for storing SGBs since they are government securities.
  • Investment in SGBs is low-risk since even when there is a big market crash, it will have a low impact on gold prices.
  • While Physical gold prices may vary from vendor to vendor, SGBs are at the best prices, much lower than that of Physical gold, for both buyers and sellers since the RBI regulates them.
  • You can earn good returns twice every year for eight years.
  • Besides, you can use SGB as collateral for loans.

Sovereign Gold Bond Maturity and Premature Redemption

The maturity period for the sovereign gold bond is eight years. If you hold it until maturity in the eighth year, you can enjoy a 100% exemption. However, after investing in an SGB, an investor can choose to exit the position from the fifth year on the interest payout dates. One can sell an SGB in the secondary market for five years but may not get the deserving price due to low liquidity.

Sovereign Gold Bold Maximum Limit and Returns

Individual investors can buy SGB from 1 gram to 4 kg. However, trusts and universities can buy up to 20 Kg of SGB. The Interest rate is 2.5% annually, and the return is paid twice yearly for eight years.

Sovereign Gold Bond Price History for FY 2023-24

Before going ahead with SGB 2023-24 Series IV, you need to closely examine the history of SGB for FY 2023-24. The Series 1 came out in June 2023 with ₹5,926 per gram. Series 2 came out in Sept 2023 with ₹5,923 per gram, and last but not least, Series 3 came out in December 2023 with ₹6,199 per gram.

How to buy a Sovereign Gold Bond SGB February 2024 Online

You can buy Sovereign Gold Bond (SGB) online through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and Indian stock exchanges directly or through brokers.

You can buy SGB through a bank online, and here are the steps involved:

  • Log into the bank's internet banking account.
  • Next, select the e-service option and then choose Sovereign Gold Bond.
  • Once you select Sovereign Gold Bond, you must read the terms and conditions carefully and click the ‘Proceed' option.
  • Complete the registration form and click the ‘Submit' button in the next step.
Sovereign Gold Bond SGB February 2024 Details
Sovereign Gold Bond SGB February 2024 Details

You can also buy a Sovereign Gold Bond through a SEBI-registered discount broker like Zerodha. Here are the steps to follow:

  • To begin, you need to log into Zerodha's Gold Bond page.
  • Another way is to get to the Coin by Zerodha dashboard.
  • Next, you can click on ETFs and SGBs to invest in the Sovereign Gold Bond scheme.
  • After that, you can click the ‘Sovereign Gold Bond investment' option and fill in the required details.
  • In the final step, click the ‘Place order' button.
Sovereign Gold Bond SGB February 2024 Details

Sovereign Gold Bond SGB February 2024 FAQs

When can I buy Sovereign Gold Bonds (SGBs) in February 2024?

You can invest in SGBs from February 12th to 16th, 2024. The bonds will be issued on February 21st, 2024.

What is the minimum and maximum amount I can invest in SGBs?

Individuals can invest from 1 gram to 4 kilograms of gold in SGBs, and trusts and universities can invest up to 20 kilograms.

What is the interest rate on SGBs?

The current interest rate for SGBs is 2.5% annually, paid twice yearly for eight years.

What are the benefits of investing in SGBs compared to physical gold?

SGBs offer several advantages over physical gold, including:

  • Security: SGBs are government securities, making them safer than storing physical gold at home.
  • Low risk: Gold prices are relatively stable, even during market downturns.
  • Competitive pricing: SGBs are issued at the best available gold price, often lower than physical gold prices.
  • Regular returns: You earn interest on your investment twice a year for eight years.
  • Loan collateral: You can use SGBs as collateral for loans.

How can I buy Sovereign Gold Bond SGB February 2024 online?

You can buy SGBs online through various channels, including:

  • Banks: Log in to your online banking account and navigate to the SGB investment option.
  • Stock Holding Corporation of India Limited (SHCIL): Visit the SHCIL website and follow the instructions for investing in SGBs.
  • Designated post offices: Find a post office authorized to sell SGBs and invest in a person.
  • Indian stock exchanges: Invest in SGBs through your trading account with a SEBI-registered broker like Zerodha.

Conclusion

I have explained the details of Sovereign Gold Bond SGB February 2024, including the subscription dates and price. I have also walked you through the various factors you need to consider while investing in sovereign gold bonds. After reading this post, you can buy Sovereign Gold Bond SGB February 2024 without difficulty.

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