The History of Gold
Currency notes globally used to be backed by actual gold 50 years ago! In current times, as people get more disillusioned by the paper money being printed by nations to pump liquidity in global markets, gold as storage of value and investment becomes important. India is the biggest consumer of gold in the world and in 2020-2021 alone we imported INR 2.5L crore (~US$ 34 bn).
However, STOP buying physical gold as a form of investment and storage of your wealth when you can buy Sovereign Gold Bonds instead!
Buy Sovereign Gold Bonds (SGBs)
Gold Bonds are government securities issued by the Reserve Bank of India (RBI) and are backed by the Government of India by actual physical gold that it owns. The price of the SGBs is directly linked with price of physical gold. This is a security issued mostly for retail investors and includes applications by HUF/trusts. In a single year, an individual or HUF can apply for a minimum of 1 gram and a maximum of 4 kg in gold bonds. For entities, trusts and corporations, however, the maximum threshold increases to 20 kg. SGB also pays an annual interest of 2.5% and issued for a tenor of 8 years.
Individuals can invest in SGBs and hold it in their demat account without facing the burden of investing in physical gold.
The RBI introduced SGBs under the Gold Monetization Scheme in 2015. The RBI announces the issue of these bonds in a press release and investors can only purchase these bonds within a one-week window almost every month.
What are the benefits of Gold Bonds?
To understand SGBs further watch this video!
Investing in Sovereign Gold Bonds with IndiaBonds
IndiaBonds makes it easier for investors to buy Sovereign Gold Bonds online. Invest from the comfort of your living room!
- It’s easy, convenient and hassle free
- Get Rs 50 as discount on your transaction
- Simplified payment methods
- Get Assistance from experts in case of queries
Invest in just 3 simple steps :
Select - Go online on https://sgb.indiabonds.com/sovereignGoldBondWelcome and select the amount you want to invest
Verify - Do a simple KYC for identification purposes and link your demat and bank accounts.
Online payment - Make your payments using established online payment portals and book your gold bonds!
Sovereign Gold Bonds are really a gift given all the advantages and ease of investment. It’s time to invest on you own or even gift it to your loved ones!
Gold Facts : Were you aware of some of these interesting facts on the yellow metal?!
- In early civilizations it was signified as a sign of power, beauty and even immortality.
- Gold doesn’t ever corrode, rust or oxidize
- You cannot burn gold
- It retains its shine and purity even if its’s placed in water for years
- It is malleable (can be melted), transformed into different shapes and is easy for transportation
- Gold was used as a medium of exchange for international trade as early as 1500 BC by Egyptian empire
- Use of gold coins as monetary system was wide at the height of Roman empire in 50-150 AD
- Most of the modern world nations continued to use gold for global trade and store of value in 20th century until 1976 when US stopped backing their currency with gold (Bretton Woods accord) and hence started the use of paper money
- Gold melts only at 1,064 degrees centigrade temperature!