The secondary market liquidity is too low. 200-300 units traded per day max. Also the discount depends on the daily gold price movements.
Disclosure:Bought jan series at 4950, june series 4792.Adding regularly in secondary markets.
Check all series. Eg may29 series has volume of 1000 units many days
have a look at SGBAUG24 series
i have noticed discount tends to be lower in this one as compared to the newer series and better volumes (relatively speaking)
if I buy sgb from the secondary market nd hold till maturity, is the capital gains zero?
i have been getting conflicting info on this.
NO u will have to pay long term capital gain if u buy from market
I beg to differ here… Only redemption in secondary market attracts tax.
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this the best video on how to invest in gold IMHO,According to him as long as you get your sgb redeemed by rbi its tax free irrespective you buy a fresh issue or get it from open market
One year back, I invested some money in SGB in past via secondary market purchase . Even though this is highly illiquid, the significant discount in secondary market made this as attractive. But today, I thought of buying some SGBs, when i checked the price in https://www.ibja.co/ and compared it with LTP, the discount is gone. Does market starts to price the SGB to its real worth?
If Financial Emergency gets declared due to systematic and unsystematic risk, and currency collapses, will government return my Gold? Gold is a SANATAN Asset.
Financial assets, precious metals, are opportunities to invest, either for diversification to reduce the volatility from volatile assets, or to gain some return when opportunities arise.
If indeed currency falls, compared to the state of society at that time, we will have bigger things to worry about than government returning our gold, holding physical gold may not help either in that situation.
Value of certain things changes with perception. It is said that, gold has value because everyone thinks that it has value, and if that perception changes, it may not be as valuable as it is today.
Just saying.
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Sovereign Gold Bond (SGB) redemption prices are based on 999KT - 24-karat rate as reported by the India Bullion and Jewellers Association Ltd (IBJA). I do not see Gold 995 rate on IBJA !
SBI GOLD ETF list 999KT (IDIA00500001) SBI Gold ETF Formerly Known As (sbi ETF Gold)
Google search of IDIA00500001 seems to show many ETF uses 999KT.
But, Zerodha GOLD ETF buys 995KT gold. Zerodha Gold ETF | GOLDCASE - Invest in Gold ETFs Now
Q1 What is the benchmark for Gold 995 ? Gold 999 for Indian ETF? Is it linked to International market or it is India specific? IBJA publishes rate only 2 times a day.
Q2 Given the difference between delivery market in China etc with paper Gold/silver in west. How truely Indian ETF near to true Indian rates for physical delivery at commercial level?
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