Gold Bonds Scheme's 8th Tranche Opens today: Price, Dates, Discount; How to Buy online

New Delhi, Nov 29: The eighth tranche of the Sovereign Gold Bond Scheme 2021-22 will open for subscription for five days starting from November 29 and it will close on December 03. The government of India, in consultation with the RBI, is offering a discount of Rs 50 per gram on the nominal value to those investors applying online and the payment against the application is made through digital mode.

People can buy Sovereign Gold through the digital method through the websites of listed commercial banks and can get Rs 50 discount per gram if applied online. "For such investors, the issue price of Gold Bond will be Rs 4,741 per gram of gold," it added. The issue price of Series VII was Rs 4,761 per gram of gold. The RBI will issue the bonds on behalf of the Government of India.

The bonds will be sold through banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

With an objective to reduce the demand for the precious metal, the Scheme was launched in November 2015 and to shift a part of the domestic savings - used for the purchase of gold - into financial savings.

Price of bond is fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.

The bonds will be denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond will be for a period of eight years with exit option after 5th year to be exercised on the next interest payment dates.

The minimum permissible investment is 01 gram of gold. The maximum limit of subscription is 4 KG for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March).

The Know-your-customer (KYC) norms will be the same as that for the purchase of physical gold.

As it is linked to the market price of the yellow metal, the scheme is considered to be a safe bet among investors.