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Fifth tranche of sovereign gold bonds from Sept 1

This latest bond issue will be at Rs 3,150 per gram, compared to fourth issue made at Rs 3,119

BS Reporter  |  Mumbai 

Gold up 6.7% in Jan on renewed prospect as safe asset

The government on Tuesday announced the fifth tranche of sovereign gold bonds.

“Applications for the bonds will be accepted from September 1, 2016 to September 9, 2016. The bonds will be issued on September 23, 2016,” the finance ministry said. Through the past four tranches of sovereign gold bonds, the government sold 7.785 tonnes of gold for Rs 2,240 crore.

The first three bond issues are listed on stock exchanges under the debt segment and the first one is currently trading at 2-3 per cent premium.

The latest issue will be at Rs 3,150 per gram, compared to the last issue at Rs 3,119. In this, bonds worth a minimum one gram of gold can be purchased and 2.75 per cent per annum interest will be paid. Banks are also offering the ASBA (applications supported by blocked amount) facility for investing in sovereign gold bonds.

As the first three bond issues are listed, the government has ensured liquidity. The latest issue seeks to encash the upcoming festival mood. Gold buying is expected to pick up during the Onam festival in Kerala in September.

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First Published: Wed, August 31 2016. 00:11 IST