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Draft Sovereign Gold Bond Scheme

Draft Sovereign Gold Bond Scheme
Start Date :
Jun 17, 2015
Last Date :
Jul 02, 2015
17:00 PM IST (GMT +5.30 Hrs)
Submission Closed

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: ...

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement:

“India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is neither traded, nor monetized. I propose to… develop an alternate financial asset, a Sovereign Gold Bond, as an alternative to purchasing metal gold. The Bonds will carry a fixed rate of interest, and also be redeemable in cash in terms of the face value of the gold, at the time of redemption by the holder of the Bond.

Accordingly, a draft outline of the Scheme has been prepared. Comments and views are invited on the draft scheme by 2nd July, 2015.

(The outline of the Sovereign Gold Bond Scheme is only at the draft stage and is being placed here to obtain public opinion. The scheme as it stands at this stage, does not imply any commitment from the government)

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Showing 202 Submission(s)
Sangeetha Subbiah
Sangeetha Subbiah 10 years 12 months ago
#GoldBondScheme Outline states that "Upside gains and downside risks will be with the investor and the investors will need to be aware of the volatility in gold prices".- If we compare this gold bond scheme with that of gold savings schemes of popular gold jewel shops like GRT and others,they take this risk at their level instead of putting it on the investor.Though the amount saved could be redeemed only as jewel, the investor has the option to choose between cash invested or gold accumulated..
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Comments (1)
Sundar Manikkam
Sundar Manikkam 10 years 12 months ago
It will demoralise the poor majority of the country and it will pave way for concentration of economic power. Physical holding of gold increases the confidence of the poor and middle class. The gold bond with its easy transferability will enable the rich to purchase the bond at discounted rates pooling their black money to fill the gap. Thus the black money safely gets distributed making its unearthing impossible and causing ripples in the economy. It will increase the money supply
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sushil agarwal
sushil agarwal 10 years 12 months ago
There should full liquidity of Gold Bonds without any restriction of minimum time period for retention. However interest may be paid only if the Gold Bonds her held for a minimum period of one year and thereafter on Quarterly Basis (no interest for less than a quarter). After two years of retention, the interest should be paid for the entire duration (calculated up to the last day). Another one or two percent should be paid as loyalty bonus for periods beyond two years
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sushil agarwal
sushil agarwal 10 years 12 months ago
Judicious cost of borrowing money is 12% PA. Govt will use funds that it collects against gold bonds for some projects. It is fair to assume that Govt will be earning minimum 12% on this money (or saving on the cost of borrowing equal amount of money). Incidental expenses on issuance of gold bonds will be approximately one percent of the fund value. Balance 11% should be shared equally between Govt and Investors as both run equal risk of making or losing money as per fluctuating gold rates.
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Ashish Kumar Sharma
Ashish Kumar Sharma 11 years 6 hours ago
Ornaments as gold will attract very few. Coins and bars will definitely be priority. Returns should be tax free. Returns can be in inform of gold or money. Something like VDIS can attract lot of unaccounted gold . Temples need to be persuaded to join same goes for other places of worship. Tap companies who are in business of loan against gold. Returns should be more then that of FDs. SIP mode should explored. Maturity can be linked to important events of ones life education marriage etc.
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abhishek mondal
abhishek mondal 11 years 17 hours ago
It is a very good initiative taken by Govt. of India, but I am very surprised that, why Govt. decided to not to take reference rate for Gold from ‘MCX’(which has largest market share, liquidity and participation in Indian commodity markets) - - ABHISHEK MONDAL
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Tamal Bhattacharya
Tamal Bhattacharya 11 years 17 hours ago
Great initiative to unlock values and national growth. However should consider value of MCX as all jewelers consider that as benchmark real time price. Interest should be tax free and long term capital should be considered for best result.
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Ranjeet SIngh_14
Ranjeet SIngh_14 11 years 18 hours ago
Good Day,This is super scheme and I believe that 95% people shall invest in this scheme. I will be 1st one.please post more information about this. thanks.
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