The subscription of the fourth series of the sovereign gold bond scheme that will run until next year, will be made available on the 6th of July, and be closed on the 10th of July. Investors have been notified of the fixed issue price which is four thousand eight hundred and fifty-two pounds for every gram, for those paying with cash. A fifty pound discount for every gram, will be given to investors whose application is online. And are paying through any of the available digital means, which means they will pay four thousand eight hundred and two pounds, for every gram.
Founder of Millwood Kane International known as Nish Batt, said that investors will be given a double benefit in the sovereign gold bond on one condition. This condition is if each investor could get a fixed coupon of 2.5 percent, that will be valued, and remain higher than the rise in price. He further stated that it is hoped that gold would bring in good profits for every investor, but only if a few criteria are meant. The first is that there is a clear view of the globe economy which was affected by the infectious disease that turned into a global outbreak.
Another criterion stated was for a vaccine or cure to be discovered for this infectious disease, and the last was that the current trade tensions between the super-powered nations, America and China, will be eased. Bhatt further disclosed that the price of gold had been exceptional since the start of this year, and had increased in value more than 20 percent. He continued by saying that the rise in value of gold was highest between April and June, which was the highest in the last four years. Bhatt described gold as a good investment opportunity because it serves as a safeguard, and haven against inflation that may be caused by global crisis.
He further said that what had helped gold, which he called a yellow metal, was its easy monetary policy in various countries around the globe. During this fourth series of the sovereign gold bond scheme, there are a few important notes to be taken. The first is that the government is bringing out the sovereign gold bonds in a period when its domestic value is appreciating quickly. It was noted that in the futures market, ten grams of gold was sold for a record forty-eight thousand, nine hundred and eighty-two pounds.
An important note to still be taken is that the Reserve Bank of India, takes the place of its government in issuing the sovereign gold bonds. The sovereign gold bond scheme began about five years ago with the aim of ensuring a decline in the physical demand of the yellow metal, and to ensure that a portion of the domestic savings is shifted to the financial savings. Another important thing to note is that one gram of gold is the lowest approved investment in gold bonds. It is also necessary to note that the released price of extremely pure gold by the India Bullion and Jewelry Association Limited, is what determines closing gold prices, and this in turn determines the fixed issue price of gold.