Sovereign Gold Bonds 2023-24 Series III to open tomorrow

The Reserve Bank of India (RBI) announced the Sovereign Gold Bond (SGB) Scheme Series III for the fiscal year 2023-2024, which is scheduled to open on December 18 and will close on December 22.

This release is prompted by the noteworthy surge in gold prices, surpassing a 10 percent increase in 2023, and defying expectations despite a challenging high-interest rate environment.

The price for this issue will be announced by the Reserve Bank of India (RBI) soon.

The valuation of these bonds is established by calculating the straightforward average of the closing price of gold with 999 purity, as per India Bullion and Jewellers Association (IBJA).

This average is calculated using the closing prices of gold for the three working days prior to the start of the subscription period.

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold, providing a viable alternative to owning physical gold. Investors are required to pay the issue price in cash and receive a cash redemption upon maturity.

Issued by the Reserve Bank of India on behalf of the Government of India, these bonds offer investor protection by ensuring they receive the prevailing market price of gold upon redemption.

This feature guarantees the value of the initially invested quantity of gold, making SGBs a more favorable option compared to holding physical gold.