Gold bond price fixed at Rs 3,788 per gm, issue opens Monday

New Delhi: To cash in on the festival mood, the government has decided to come out with the next tranche of sovereign gold bond on October 7.

The Sovereign Gold Bond Scheme 2019-20 - Series V will be opened for subscription from October 7 to 11, at issue price of Rs 3,788 per gramme.

Further, the government has decided to offer a discount of Rs 50 per gramme for investors applying online and making payment for the purchase of the bond through digital mode, a Finance Ministry statement said.


"For such investors, the issue price of gold bond will be Rs 3,738 per gramme of gold," it said.

The sovereign gold bond scheme was launched in November 2015 with an objective of reducing demand for physical gold and shifting a part of domestic savings, used for purchase of the yellow metal, into financial savings.

Under the scheme, bonds are denominated in units of one gramme of gold and multiples thereof. Minimum investment in the bonds is one gramme with a maximum limit of subscription of 500 gramme per person per fiscal year (April-March).

The maximum limit of subscription is 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal.