Video: Demystifying the Sovereign Gold Bond Scheme

Today we speak of the Sovereign Gold Bond Scheme where the Government Will Sell You Gold!

No, actually the government will sell you a bond that looks and behaves exactly like Gold, but it’s not actual gold. We spoke of it as a SoBoGoS scheme, where we added a lot of snark to explain the concept.

Read: What is the SoBoGoS Scheme?

Now we finally have a notification from the RBI about what this scheme really is:

• Buy The Gold Bond From Banks or Post Offices: Current Tranche open between Nov 5 and Nov 20, 2015.

• Min 2 grams, Max 500 grams, multiples of 1 gram

• Get a Holding Certificate

Can be dematerialized

• In Tranches, not on Tap

• Pay according to prev week’s average price of IBJA gold

• Interest of 2.75% on invested money, half of that every six months

• Redeemed after 8 years

After five years, can be redeemed on interest payment dates, twice a year

• Can take loans

• Tax as per LTCG like real gold

• Apply – banks, post office etc.

• No NRIs, Foreigners, Companies

Stop! Can’t You Explain Better?

Of course, which is why we have a video:

Do let us know what you think!