Latest Sovereign Gold Bond issue price is 11% higher than price during peak Covid time

The government has issued the latest Sovereign Gold Bond series I 2023-24, the Reserve Bank of India (RBI) has kept the settlement date of this tranche of Sovereign Gold Bond Scheme 2023-24 Series as June 27, 2023

Latest Sovereign Gold Bond issue price

Investors wishing to diversify their portfolios may choose to consider the first tranche of the Sovereign Gold Bond (SGB) Scheme 2023–24 of this fiscal year, which is currently open for subscription and will close on June 23, 2023. The set issue price for SGB Series I 2023–24 is Rs. 5,926 per gram of gold, which is Rs. 315 higher than the previous tranche’s issue price in March 2023 of Rs. 5,611 per gram of gold

How the SGB issue price is set

The issue price of the latest SGB is set at Rs 5,926 per gram, which is based on the simple average of closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. June 14, June 15, and June 16, 2023.

Sovereign Gold Bond price during Covid

As the COVID cases were increasing in July-August 2020, the issue price of the Sovereign Gold Bond began to fluctuate in line with gold prices. The highest SGB issue price in 2020 was Rs 5,334 for SGB Series 5 2020-21. However, by 2021, the issue price of SGB had fallen below Rs. 5000. Slowly, along with gold rates, the SGB issuance price in 2022 ranged from Rs 5,091 to Rs 5,409.

In 2023, the highest issue till date is Rs 5,926 for SGB Series I 2023-24. While, issue price of SGB when it was launched in November 2015 was Rs 2,684 per gram of gold. In the span of approx. eight years, the SGB price has grown 120.78 % in issue price.

SGB issue price history

FY 2023-24

Series	Month	Price per Gram
Series 1	Jun-23	Rs. 5,926

FY 2022-23

Series	Month	Price per Gram
Series 1	Jun-22	Rs. 5,091
Series 2	Aug-22	Rs. 5,197
Series 3	Dec-22	Rs. 5,409
Series 4	Mar-23	Rs. 5,611

FY 2021-22

Series	Month	Price per Gram
Series 1	May-21	Rs. 4,777
Series 2	May-21	Rs. 4,842
Series 3	Jun-21	Rs. 4,889
Series 4	Jul-21	Rs. 4,807
Series 5	Aug-21	Rs. 4,790
Series 6	Sep-21	Rs. 4,732
Series 7	Oct-21	Rs. 4,765
Series 8	Nov-21	Rs. 4,791
Series 9	Jan-22	Rs. 4,786
Series 10	Mar-22	Rs. 5,109

Source: Financialcalculatorindia