SGBS Subscriptions Rise in FY 2023-24 Despite Less Frequency

Idea Behind the Launch

The goal was to encourage online gold purchases. SGBs provide an 8-year tenure with the guarantee of 2.5% annual interest and capital gain tax exemption.

Undeniably, it is the smartest way to invest in gold, as it has sovereign backing, tax benefits, and offers convenient trading possibilities.

Why Choose SGBs?

The First Series

November 2015 marked the first SGB issuance, priced at ₹ 2,684 per gram. Over 860 kg of gold bonds were purchased that year.

Record High Purchase in Series II

The September 2023 tranche witnessed 11.67 tonnes of the bonds bought at ₹ 5,923/gm -the highest in 65 issuances!

Since its 2016 debut, the SGB program has sold 134.2 tonnes of gold, effectively curbing the imports by the same amount due to its purely financial nature.

The SGB Market has Matured

High Subscription Due to COVID

In 2021, with jewellery stores closed due to COVID-19, 32.4 tonnes of SGBs were bought in 12 monthly tranches.

A Strong Comeback

The subscriptions dipped in 2023, sparking concerns about investor interest in SGB. Three quarterly tranches of 2023-24 so far have already reached 31.6 tonnes, surpassing FY23's total.

Looking Forward

With the final tranche in February 2024, FY24 has the potential to surpass the 32.4 tonnes set in FY21, indicating the sustained interest in SGBs as a preferred investment avenue.