Sovereign Gold Bonds: How To Buy Gold Online At A Discount? (Step-by-Step Guide)

Sovereign Gold Bonds: There were days when you could only buy gold at jewelry shops or Goldsmiths. But now the Indian govt. is letting you invest online in digital gold.

The subscription period for sovereign gold bonds (SGBs) is already open and will end on Friday (August 26). 

Banks, the NSE, the BSE, and other authorized institutions are selling the bonds in the 2nd phase of the SGB Scheme 2022–23 for ₹5,197 each. Investors can, however, also purchase SGBs at a discount if they make their payment online.

The SGBs’ specifications and the amount of the discount are listed below.

Also Read: Ratan Tata Invests In A Senior Citizen Startup – Goodfellows

What Are Sovereign Gold Bonds?

Government securities called SGBs are valued in kilos of gold. They serve as alternatives to holding actual gold. 

The issuance price for investors must be paid in cash, and the bonds must be redeemed in cash when they reach maturity. The Reserve Bank issued the bond on behalf of the Indian government.

How To Buy Sovereign Gold Bonds Online At A Discount? (8 Easy Steps)

Banks provide customers the ability to invest in SGBs online using net banking services, with essentially identical methods. Here is a step-by-step instruction guide for purchasing SGBs online.

Step 1: Log In To Your Net Banking Account.

Utilize the credentials to access the net banking services. It is crucial to remember that anyone making an online investment needs a working login ID in order to use their bank’s net banking service. 

If someone does not already have a login ID, they must activate one right now in order to continue.

Step 2: Select ‘e-Service’ & Then ‘SGB’

Select “e-Service” from the main menu after logging in, then “Sovereign Gold Bond.”

Step 3: Register & Read T&C

New users must choose “Register,” review the “Terms and Conditions” established by the Reserve Bank of India, and then choose “continue.”

Step 4: Provide Details of Depository Participant

Along with the information of the registered user from NSDL or CDSL, which hosts the investor’s demat account, the necessary details for the SGB scheme must be entered.

Step 5: Submit The Form

Click “Submit” after completing the registration form.

Step 6: Select Purchasing Option

The investor must select the buying option from the header tab once registration is complete. 

Individuals who have already registered can bypass the registration process and go straight to the header tab’s “Purchase” option.

Step 7: Fill Subscription Quantity & Nominee Details

Subscription volume and nomination information must be entered on the new page.

Also Read: Rakesh Jhunjhunwala: One Of The Best & Inspiring Investor, Is No More

Step 8: Submit The OTP & Done!

To finish the procedure, the investor must input the one-time password (OTP) delivered to their mobile device.

FAQs – Sovereign Gold Bonds

1. Who Can Buy the Sovereign Gold Bonds?

The sale of the sovereign gold bonds will only be available to individual residents, Hindu undivided families (HUFs), trusts, academic institutions, and nonprofit organizations.

2. How To Buy The Sovereign Gold Bonds?

The bonds will be sold directly or through agents through commercial banks, the National Stock Exchange, BSE, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), specified post offices (as may be notified), and SHCIL.

3. What is the Tenure of Sovereign Gold Bonds?

The SGB will have an eight-year term, with an early redemption option after the fifth year that must be utilized on the date that interest is due.