Sovereign Gold Bond Scheme – Issue Price Fixed at Rs 5,926 per gram
Introduction: The Sovereign Gold Bond (SGB) Scheme, a government initiative aimed at encouraging investments in gold, has fixed the issue price for the latest tranche at Rs 5,926 per gram. This move comes as a significant development in the gold market and holds relevance for students preparing for various government exams, including positions in the education sector, police services, banking, railways, defense, and civil services such as PSCS to IAS. In this article, we will explore why this news is important, provide the historical context of the scheme, and discuss the key takeaways that students should be aware of.
Why This News Is Important
- Positive Impact on Gold Investments: The fixed issue price for the Sovereign Gold Bond Scheme is crucial for students aspiring to clear government exams. It ensures that potential investors are aware of the cost at which they can acquire gold bonds, enabling them to make informed decisions. This news is important as it highlights the government’s efforts to promote investment in gold and provides a lucrative avenue for candidates preparing for exams.
- Secure and Attractive Investment Option: Gold has always been considered a safe haven investment, especially during uncertain times. The Sovereign Gold Bond Scheme offers individuals an opportunity to invest in gold without physically possessing it, mitigating security risks. This news emphasizes the importance of diversifying investment portfolios and encourages candidates to consider gold bonds as a reliable investment option.
- Linkage to Current Affairs: Government exams often include questions on current affairs, and the Sovereign Gold Bond Scheme is a topic that can be expected in such examinations. Being aware of the latest developments in the scheme, including the issue price, allows students to stay updated and enhances their chances of performing well in the exams.
Historical Context:
The Sovereign Gold Bond Scheme was launched by the Government of India in 2015 to reduce the demand for physical gold and mobilize idle gold for productive purposes. It enables individuals to invest in gold in a paper form, thereby eliminating the need for physical storage and ensuring the safety of their investments. The scheme offers several advantages, such as an interest rate of 2.5% per annum on the initial investment amount and the option of premature withdrawal after a specific lock-in period.
Key Takeaways from “Sovereign Gold Bond Scheme – Issue Price Fixed at Rs 5,926 per gram”:
| Takeaway | Key Takeaway |
|---|---|
| 1. | The issue price for the latest tranche of Sovereign Gold Bond Scheme has been fixed at Rs 5,926 per gram. |
| 2. | The scheme provides individuals with a secure and attractive investment option in gold, without the need for physical possession. |
| 3. | Investors in the scheme receive an interest rate of 2.5% per annum on their initial investment. |
| 4. | The lock-in period for the Sovereign Gold Bond Scheme is five years, with an option for premature withdrawal after the fifth year. |
| 5. | The scheme aims to reduce the demand for physical gold and utilize idle gold for productive purposes. |
Important FAQs for Students from this News
Q: What is the Sovereign Gold Bond (SGB) Scheme?
A: The Sovereign Gold Bond Scheme is a government initiative that allows individuals to invest in gold in a paper form, eliminating the need for physical possession.
Q: What is the significance of the issue price being fixed at Rs 5,926 per gram?
A: The issue price determines the cost at which investors can acquire gold bonds. The fixed price of Rs 5,926 per gram provides clarity and helps investors make informed decisions.
Q: How does the Sovereign Gold Bond Scheme differ from physical gold investments?
A: Unlike physical gold investments, the Sovereign Gold Bond Scheme offers a secure and convenient way to invest in gold without the risks associated with storing physical gold.
Q: Is there any interest earned on investments in the Sovereign Gold Bond Scheme?
A: Yes, investors in the scheme receive an interest rate of 2.5% per annum on their initial investment amount.
Q: Can investors withdraw their investment before the completion of the lock-in period?
A: The Sovereign Gold Bond Scheme has a lock-in period of five years, but investors have the option of premature withdrawal after the fifth year.
Some Important Current Affairs Links
