Do you have an idea to invest in Gold ? Here is a smart, safe & secured option

India as a country always has an appetite for investing in gold. Although gold is seen as an investment option, people preference stays with ornament gold and at times they prefer investing in gold bars. The disadvantages which linger around such investment are:

• A sense of fear attached to holding physical gold due to security reasons
• The money invested does not earn any income and lies idle
• Additional amount spent on “Locker charges” for safeguarding the physical gold
• Additional spent on purchase of ornamental gold like “Making” & “Wastage” charges
• At the time of liquidation, we may lose some amount due to depreciation value (In case of ornamental gold)

There is still an option to invest in gold smartly negating all the above highlighted pointers. India’s finance ministry has come out with the subscription for “Sovereign Gold Bond”  4^th Tranche for FY 2016-17(series – 1). The subscription period is from 18^th July to 22^nd July. Key features of the scheme are:

Minimum Subscription: 1 gram

Maximum Subscription: 500 grams

Bond denomination: 1,2,5,10,50,100 grams

Rate of Interest: Fixed rate of interest at 2.75% on the initial amount invested

Forms of Gold Bonds: Certificate holding & De-mat format

Redemption Price: The price is fixed at the price of gold of 999 purity as published by the Indian Bullion and Jewellers Association Limited of previous week

Issuance Date: The bond shall be issued at 5^th Aug 2016

Premature Redemption: This facility can be availed after 5 years

Where to Buy: Scheduled Commercial Banks, designated post office & Stock Holding Corporation of India Ltd

Commission Charges: One rupee per hundred of the total value of subscription

Tax Benefits: Capital gains tax arising on redemption to an individual is exempted

Tradability: The date of commencement of trading in respect of Bonds issued will be notified by RBI

Additional benefits to the country:

1. The amount invested in gold is in the form of certificate or De-mat format which is tradable. As the amount invested is not lying idle, it increases the money flow
2. Gold is the 2^nd highest imported product in India. If more gold is purchased through bonds, then it leads to reduction in imports this will reduce our trade deficit
3. Trade balance leads to Rupee value being appreciated

Refer to the link for more details : Sovereign Gold Bond Scheme

National Toll free number : 1800 1800000

The physical gold which we purchase, lead to larger impact to our economy. Next time when you set out to purchase gold make it a balanced one. Only need based investment can be in ornamental form. Any amount channelized towards gold in the form of investment can be through Gold bonds.

THINK WISELY,  INVEST RESPONSIBLY,  LIVE HAPPILY!!!