As you may know that gold is the best product to deal with inflation in India and many of you may know that Sovereign Gold Bonds are the best gold investment product in India because these are fully guaranteed by the government of India and we can also earn a regular income from these bonds as it provides a periodical interest of 2.5% per annum in every 6 months. Now if you are planning to invest in sovereign gold bonds then you may know that you can invest here if there is a new issue from RBI or you can invest by buying sovereign gold bonds from the secondary market. Sometimes a new issue is uncertain to come so we can easily buy our SGBs from the secondary market because in the secondary market there are more than 40 SGBs listed which are issued earlier by RBI with all the benefits of Gold Bond Investment. Now if you are thinking to buy SGBs from the secondary market then you have to be cautious because each sovereign gold bonds has its own interest amount and its own redemption date because of this your earnings can fluctuate dramatically and in the end, you will earn a lower yield compare to any latest issue. Here I'm telling you that you can generate a lower yield because the interest amount is calculated on the face value amount of SGB and each SGB has its own face value, for example, you may know that earlier gold bonds have been issued at a much lower price even lower to Rs. 3000 because of this the interest amount will also be calculated on Rs. 3000 if you are thinking that you will earn interest on your market buying price then you are wrong.
Things you should know before buying Sovereign Gold Bonds from Secondary Market
- Each SGB has its own Face Value amount and because of this interest calculation is also different in each case.
- Earlier Gold Bonds are providing interest @ of 2.75% on Face Value amount (You can refer to this page to know which gold bonds are providing interest @2.75%).
- After buying gold bonds from the secondary market if you selling it to any third person or sell it in the secondary market then you are liable to pay tax on your capital gains unlike in the case of redemption of SGBs with RBI.
- Earlier SGBs have lower liquidity in the secondary market because many people had not opted to hold units in Demat form because of this there is a fewer number of the seller in earlier SGBs.
- You will receive periodical interest payment every 6 months on the date of issuance made by RBI till the redemption date of SGB. for interest payment date you can refer this page- https://www.moneyseth.com/blogs/SGB-Interest-Payment-Dates
Best Sovereign Gold Bonds to buy from Secondary Market (Best SGB to Buy)
Series Name | Face Value | NSE Code | Maturity Date | Int. Rate | Int. Per Annum |
2022-23, Series IV | 5611 | SGBMAR31IV | 14-03-2031 | 2.5 | 140.28 |
2022-23, Series III | 5409 | SGBDE30III | 27-12-2030 | 2.5 | 135.23 |
2020-21, Series V | 5334 | SGBAUG28V | 11-08-2028 | 2.5 | 133.35 |
2022-23, Series II | 5197 | SGBAUG30 | 30-08-2030 | 2.5 | 129.93 |
2020-21, Series VIII | 5177 | SGBN28VIII | 18-11-2028 | 2.5 | 129.43 |
2020-21, Series VI | 5117 | SGBSEP28VI | 08-09-2028 | 2.5 | 127.93 |
2021-22, Series X | 5109 | SGBMAR30X | 08-03-2030 | 2.5 | 127.73 |
2020-21, Series X | 5104 | SGBJAN29X | 19-01-2029 | 2.5 | 127.6 |
2022-23, Series I | 5091 | SGBJUN30 | 28-06-2030 | 2.5 | 127.28 |
2020-21, Series VII | 5051 | SGBOC28VII | 20-10-2028 | 2.5 | 126.28 |
Note:- You will only be eligible to receive interest if you hold your gold bonds in your Demat account on the date of interest payment
