Sovereign Gold Bonds 2019-20 (Series III): Issues price per gram gold, settlement date out

Sovereign Gold Bonds 2019-20 (Series III): The government has issued order to open Sovereign Gold Bonds 2019-20 (Series III) for the period August 5 - 9, 2019 at an issue price of Rs 3,499 per gram with a settlement date on August 14, 2019, according to an official statement. 

"Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 3,449 (Rupees Three Thousand Four Hundred Forty Nine only) per gram of gold," the Finance Ministry said in a statement on Friday.

The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings. 

Notably, those who are looking for investment in gold have multiple options to choose from. One such option is to
invest in physical gold, in the form of jewellery, coins or biscuits, or set up a demat account to purchase gold electronically. Other than physical gold, there are gold-based financial products including gold ETFs (exchange traded funds), and gold schemes like gold-denominated bonds. 

In the gold-based financial products, gold ETFs act like mutual funds, wherein the value of investment is linked with the market price of the underlying asset. 

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The Sovereign Gold Bond (SGB) is among the government-backed schemes like Indian Gold Coin Scheme and Gold Deposit Scheme (GDS) which are available for investment in non-physical gold category.