Second Tranche Of Gold Bonds Scheme Opens On May 24: Check Issue Price

Sovereign Gold Bond 2021-22 Scheme: The second tranche of the sovereign gold bond scheme 2021-22 opens for subscription on Monday, May 24, 2021. According to the Reserve Bank of India's schedule set for the gold bond scheme 2021-22, the second tranche window will be open for investors between May 24 - May 28. In a statement on Friday, May 21, the Ministry of Finance, in consultation with the central bank, announced the issue price of gold bonds which will be available in the second tranche of the scheme. (Also Read: What Are Sovereign Gold Bonds? Here's All You Need To Know )

According to the RBI, an issue price of Rs 48,42 per unit, equivalent to the value of one gram of gold, is applicable for the second installment of the gold bond scheme 2021-22. The date of issuance for the second tranche is set as June 1, 2021. The issue price set for each tranche is calculated using a simple average of the prices given by Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.

The government-run scheme, which offers a suitable way to invest in digital gold for subscribers, amid the COVID-19 crisis, offers additional returns on investment. The gold bonds are linked to the market price of the yellow metal and have become a popular option to purchase gold in a non-physical form.
 

Sovereign Gold Bonds 2021-22 Series II: May 24-May 28; What You Need To Know

Should You Buy? Here's what experts say-

“The price for the second tranche of Sovereign Gold Bond has been fixed at Rs 4842/gm. Based on their risk profile investors should look at allocating 5-15 per cent of their capital to Gold. Sovereign Gold Bond is a better alternative to physical gold as there is no risk of theft, storage charge, and to top it up it comes with an interest-bearing coupon,'' said Mr. Nish Bhatt, Founder and CEO, Millwood Kane International - an investment consulting firm. 

Discount For Online Subscribers

For those who are investing in the gold bonds scheme online, in which the payment is made through any of the digital modes, a discount of ₹ 50 per unit is applicable, according to the Reserve Bank of India. For the online subscribers, the issue price is set at ₹ 4,792 per gram of gold in the second tranche of sovereign gold bonds 2021-22 scheme.