New tranche of gold bonds out with a discount
Sovereign gold bonds come at an issue price of ₹3,443 per gram, with a discount of 1.45%, which partially counteracts the customs duty hike of 2.5%
For those who wish to invest in it, sovereign gold bonds have emerged has a highly efficient vehicle
After a blistering 12.24% return on gold over the past year, the government has stepped in to curb imports of physical gold. In Budget 2019, finance minister Nirmala Sitharaman hiked the customs duty on the precious metal from 10% to 12.5%. The decision flew in the face of a recommendation NITI Aayog made in 2018 to reduce customs duty on gold to discourage smuggling and improve tax compliance. The duty hike makes buying physical gold yet more expensive for India’s retail investors and consumers.