There are bond and sgb buying and selling platforms
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Anybody invest in Sovereign gold bonds?
- Thread starter Deleted member 9785
- Start date
anyways gold rate wont go down so SGB too
but lockin is tough for emergency
anisharya16
TF Premier
Yeah. Only if there's extra money lying in the bank can go to sgb
CXO
TF Buzz
Here's an update:
www.businesstoday.in
So, I wonder now where will all the pro 'SGB' guys go?
Said it before, SGB is not gold, it is a govt bond - worth repeating. The govt realized paying 12-15% return as a lender was making no sense, especially when they can issue a bond for 7-8%.
‘Complex, expensive’: Further tranches of sovereign gold bonds unlikely
SGBs: Sources told BT TV that further tranches of sovereign gold bonds are unlikely as it is a complex and expensive instrument.
So, I wonder now where will all the pro 'SGB' guys go?
Said it before, SGB is not gold, it is a govt bond - worth repeating. The govt realized paying 12-15% return as a lender was making no sense, especially when they can issue a bond for 7-8%.
anisharya16
TF Premier
Well, I am still here. First of all, if they did not make any changes in gold import duty then Sgb would still be a good instrument and I would have recommended it. TBH after the changes, I myself won't recommend SGB now. I would suggest choosing some other instruments to diversify their portfolio. Also I invested in SGB last year June. Let it mature 8 years later. Will meet you 8 years later, I am not going anywhere. I hope this community still exists till then.Here's an update:
‘Complex, expensive’: Further tranches of sovereign gold bonds unlikely
SGBs: Sources told BT TV that further tranches of sovereign gold bonds are unlikely as it is a complex and expensive instrument.
So, I wonder now where will all the pro 'SGB' guys go?
Said it before, SGB is not gold, it is a govt bond - worth repeating. The govt realized paying 12-15% return as a lender was making no sense, especially when they can issue a bond for 7-8%.
panchabhut
TF Ace
They will remain available in secondary market for several yearsHere's an update:
‘Complex, expensive’: Further tranches of sovereign gold bonds unlikely
SGBs: Sources told BT TV that further tranches of sovereign gold bonds are unlikely as it is a complex and expensive instrument.
So, I wonder now where will all the pro 'SGB' guys go?
Said it before, SGB is not gold, it is a govt bond - worth repeating. The govt realized paying 12-15% return as a lender was making no sense, especially when they can issue a bond for 7-8%.
Physical gold is best.
Sorry, what changes happened in SGB?
anisharya16
TF Premier
Well, I am still here. First of all, if they did not make any changes in gold import duty then Sgb would still be a good instrument and I would have recommended it. TBH after the changes, I myself won't recommend SGB now. I would suggest choosing some other instruments to diversify their portfolio. Also I invested in SGB last year June. Let it mature 8 years later. Will meet you 8 years later, I am not going anywhere. I hope this communityHere's an update:
‘Complex, expensive’: Further tranches of sovereign gold bonds unlikely
SGBs: Sources told BT TV that further tranches of sovereign gold bonds are unlikely as it is a complex and expensive instrument.
So, I wonder now where will all the pro 'SGB' guys go?
Said it before, SGB is not gold, it is a govt bond - worth repeating. The govt realized paying 12-15% return as a lender was making no sense, especially when they can issue a bond for 7-8%.
Govt decrease import duty on gold on budget day
Ah okay, got it
CXO
TF Buzz
I tried suggesting earlier on, that it was not an alternative for gold. The govt saved around ₹9,000 crores by lowering the basic customs duty.
As your portfolio networth increases, in order to maintain your asset allocation in gold - you cannot rely on SGB, even as a proxy now because there are no new issues planned (from what we hear).
Again, we need to think of it from the instrument creator i.e. the govt who is the lender. Why would they want to offer 12%-15% return, when they can launch a soverign bond at 7-8%.
The way it was being presented to the market as an alternative to gold, was, imo, very wrong.
Physical Gold, with its difficulties is still the best. No one controls it, you own it.
anisharya16
TF Premier
Frankly speaking, I agree what govt has done was not morally correct to SGB investor.
But see the price of gold as of today... It's back to almost to the same level.
Were you getting physical gold in less price then SGB?? No na.. then there is no point of comparing both.
I think more loss have occurred to those people who have gold at the highest price before budget.
Remember govt hasn't launched any SGB in this fiscal year so we are not at loss. I agree that earlier redemption will be done at a lower price but if you are comparing with physical gold then SGB holders are at a better place.
SGB is still the best form to invest in Gold!!
CXO
TF Buzz
I was saying it before the budget. Check the thread.
RBI Announces Premature Redemption For Sovereign Gold Bonds Issued From May 2017 To March 2020
The redemption price will be based on the average gold prices from the three business days preceding the maturity date.
And now they're going to go ahead and do premature redemptions.
IF you bought physical gold, you would not have to worry about such steps of the govt.
CXO
TF Buzz
Sorry it isn't. It is a bond.
Are you getting more value if you sell your physical gold at the same time? No na...
Why you are not understanding this simple thing?
In a way it's good that instead of 8 years holding period, people have a choice to withdraw it after 5 years completion.
And one thing whoever invested in SGB are clever enough... They already knew that they don't have to hold it till infinity... They have to redeem after a period of time.
It seems to me you are noob in the market that's why you are reacting like this. But it's okay you are free to express your thoughts in India.
Again you can refer my previous reply where I have clearly mentioned whatever govt has done was not morally correct but the impact is not only on SGB. The impact is on Gold price.. ln whatever form you hold Gold the impact was done... Anyways gold price is almost at same level as of Budget date.
Frankly speaking now I am sensing the pain physical gold holders have more than SGB holders!!
anisharya16
TF Premier
Okay bro.I was saying it before the budget. Check the thread.
RBI Announces Premature Redemption For Sovereign Gold Bonds Issued From May 2017 To March 2020
The redemption price will be based on the average gold prices from the three business days preceding the maturity date.www.ndtvprofit.com
And now they're going to go ahead and do premature redemptions.
IF you bought physical gold, you would not have to worry about such steps of the govt.
panchabhut
TF Ace
Its optional not automaticI was saying it before the budget. Check the thread.
RBI Announces Premature Redemption For Sovereign Gold Bonds Issued From May 2017 To March 2020
The redemption price will be based on the average gold prices from the three business days preceding the maturity date.
And now they're going to go ahead and do premature redemptions.
IF you bought physical gold, you would not have to worry about such steps of the govt.
The main benefit of SGB was Zero LTCG when held till maturity. It was Gold price linked Tax instrument more than anything else.
Rajagopalan
TF Buzz
Hello CXO,
IMO, for people who are into SGB for Investment purpose only, nothing can beat SGB.
1. People investing in SGB knew that they have a 8 Year lock in for Zero LTCG.
2. The import duty cut has impact on Physical Gold as well.
3. Let's say if I have to buy a Physical Gold, I should have paid a minimum of 2% making charge for a Gold Coin and approx. 15% wastage if its a jewellery. On top of the wastage I had to pay 3% GST also. So overall 5% overpaid at the time of purchase incase of Gold Coin and around 20% overpaid if it is jewellery.
4. SGB pays back 2.5% yearly for 8 years.
5. SGB gives Rs.50 discount for online mode application which is approx 1% discount given the purchase made till 2020.
6. Zero LTCG after 8 years. (ETF / Gold MF has the Capital Gain tax added to it).
7. Incase if there is any emergency need of fund, i can anyday sell my SGB at Market price as it is in Demat form. (At the moment SGB's are trading with a premium of around 3 to 4 % in the demat market. So Market price sell is a steal.
Where do the SGB investors even loose out here.? Pls do explain with a small data point explaining why SGB is not the best Gold investment option and I will stand corrected.
