Sovereign gold bond subscription to begin on September 11; Here's all you need to know

The Reserve Bank of India (RBI) has set the issue price for the upcoming Sovereign Gold Bond tranche at Rs 5,923 per gram, with subscription opening on September 11.

The price is calculated based on the average closing price of 999 purity gold. Investors who apply online and make digital payments will receive a Rs 50 per gram discount, resulting in an issue price of Rs 5,873 per gram for them.

The subscription period for these bonds will run from September 11 to September 15, and they will be available through various channels, including banks, designated post offices, and recognized stock exchanges. This scheme, initiated in 2015, aims to divert domestic savings from physical gold to financial savings.

The bonds are denominated in grams, have an 8-year tenor with an exit option after the fifth year, and adhere to Know Your Customer norms similar to physical gold purchases.