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Sovereign Gold Bonds Investors Scheme - a Great Success
Posted on: 02/Nov/2015 3:55:23 PM
The sovereign gold bonds investors scheme is likely to benefit all the investors as they can reap a compensation at a fixed rate of 2.75 percent per annum which is payable for them semi-annually against the initial investment value.
Compared to the interest rate offered a year back, the presently announced rate of interest is better, says Prithvi Kothari of Riddhi Siddhi Bullion. Indians have got the traditional practice of buying gold. From now on, they can make good money with their gold and earn fixed rate together with the benefit of price appreciation.
At the time of announcing about the launch of sovereign gold bond scheme, the Prime Minister Narendra Modi touted this to be a very secure and safe mode. The investor will receive a piece of paper from the banks in exchange to the gold invested, and this has no threat of getting robbed.
Based on the average closing price of 999 purity gold, the India Bullion and Jewellers Association Ltd will fix the price of bond. Similarly, the same method will be practiced for calculating the redemption price for the bonds. One can invest a minimum of 2 units of gold, i.e. 2 grams of gold.
Mr Kothari adds that there are several accounts opened under the Jan Dhan Yojna. Allowing people to invest as low as two grams of gold is an added advantage as it allows people from poor background to invest too.
In my opinion, the key benefit of this scheme is the safety and financial safety implications of the scheme.
When the price of gold is lower, the buying opportunity will naturally increase. Last week, the price of gold was data dependent, and by the end, investors seemed skeptical due to uncertainty with the US monetary policy.
