• Skip to main content
  • Skip to primary sidebar
  • Home
  • Mutual funds
  • stock trading
  • saving schemes
  • Tax
  • Life Insurance
  • Credit card

Jo jo wealth

AMFI Registered Advisor

Sovereign gold bonds vs Physical gold

What are svg or Sovereign gold bonds ?

Bonds issued by RBI, based on 1 gram gold, those are equal to gold, no GST, and recurring annual interest 2.5% untill the bond gets matured. You can without demat/trading account. At banks or post office, even with small 1gram to 4kg per year.

1 lot = 1 unit/ 1 gram gold worth of 4.5kinr

Recurring income

Annual interest 2.5% paid semi-annually.

Limit for 1 year
Huf/ individual == 4kg / year
Trust= 20kg/year

Tax: capital gain
Short term capital gain tax: within 1 -3 year(tax bracket, income added total income)
long term capital gain tax:10% with indexation benefit.

Maturity period
8 years
selling after 5 years attracts capital gain tax.

selling in secondary market stock exchange
attracts short-term or long term tax .

Sovereign= king (government RBI).

RBI Sovereign Gold Bond scheme

Substitutes for holding physical gold. Investors has to buy, redeem after maturity.

Physical gold vs SGB (Sovereign gold bonds)

Risk & cost of storage is eliminated in SGB.
Assumed market rate at redemption, Bonus
2.5% annual interest but with physical gold no such benefit.
GST: physical gold attracts but SGB. Doesn’t (18% saving)
No TDS.

Risk: loss of capital when market rates decline.

Where to buy Sovereign gold bonds?

at banks, post officees, stock exchange, agents.
for online application ₹50 offer per gram.

Loan on Sovereign gold bonds?
Yes, loan amount same as physical gold.

Trading SVG Bonds?

Tradable after RBI notified date.

Redemption of part holdings also possible as gram.

Is it better idea to buy Sovereign gold bonds instead of physical gold?

GST subsidy and 2.5% annual interest, no fear theft, no locker fees by bank.

However, if you want to wear occasionally, then physical gold is a good choice, but beware theives.

Also know about commodity trading and forex trading in india.

Primary Sidebar

  • how to become a Certified financial Planner exam pattern syllabus fees
  • what is value investing in stock market real estate (buy low sell high)
  • BSE vs NSE Nifty 50 companies vs sensex 30 companies mutual funds vs stocks index funds
  • SBI Trading Account Tutorial SBi Smart Demat (A-Z) fund lien /unlien order entry sell buy etc
  • how does economy works up & downs (useful for stock trading)
  • stock trading terms slang words (terminology)
  • Future and options tutorials (speculation vs hedging derivative market),
  • Sovereign gold bonds vs Physical gold
  • Commodity Trading what is Commodity market vs equity vs forex
  • Stock split vs bonus share vs dividend stocks
  • stock market basics (what's stock market, how it works? How to invest ?)
  • growth vs value vs income stocks
  • Order types in zerodha stop loss limit market SL-M SL-L BO vs CO
  • saurabh mukherjea stock market lessons recommendations coffee can investing diamonds in the dust



  • Home
  • Mutual funds
  • stock trading
  • saving schemes
  • Tax
  • Life Insurance
  • Credit card

Tools

  • two wheeler loan emi calculator
  • Car Loan EMI Calculator
  • Personal Loan EMI calculator
  • Home Loan EMI calculator
  • FD Calculator Fixed Deposit
  • Recurring deposit RD calculator
  • SIP Calculator
  • compound interest calculator
  • EPF Calculator

Follow Us

Facebook

Twitter

 

disclaimer: Information here for education purpose only
Copyright 2019 All Rights reserved TOS Disclaimer