How to Buy GOLD at upto 16% DISCOUNT | Arbitrage Opportunity on Sovereign Gold Bonds
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- Опубліковано 2 чер 2024
- 👉 ZERO Brokerage Demat and Trading Account across all segments including Intraday, FnO, Delivery, IPO, Mutual Fund, ETF's : bit.ly/444mfL3
The Sovereign Gold Bond (SGB) floated by the Reserve Bank of India (RBI) is a scheme where lakhs of Indians invest in. Since its inception in 2015, the SGB has garnered immense popularity among investors, offering not only a fixed annual interest rate of 2.50% but also capital appreciation in the price of gold. In this video, we shall examine the buying of these gold bonds from the secondary market using trading/demat accounts and how this approach offers the potential for acquiring bonds at discounts to the prevailing gold prices, presenting an attractive opportunity for investors. Specifically, we shall look at the SGB Analyzer that provides an invaluable assistance to investors, facilitating the evaluation of different SGB issues based on various parameters such as present value, fair value, and discount rates. By leveraging such tools, investors can make informed decisions and maximize their returns from SGB investments.
► The SBG Analyzer can be accessed at sgbanalyzer.com/
► Join 21,000+ readers of my FREE Investing Newsletter at shankarnath.com
👉 Video Chapters:
00:00 The Rise of Sovereign Gold Bond
01:06 Key Features of Sovereign Gold Bonds
02:50 1. SGB Discounts Available in Secondary Market
05:13 2. SGB Trading Volumes
06:03 3. Bid & Offers on SGB in Stock Exchange
06:28 4. Payment of Interest Schedule on SGBs
07:06 5. SGB Interest Rate
07:36 SGB Analyzer
11:12 SGB Taxation & Shankar's Viewpoint
#sovereigngoldbonds #sgb #goldprice #goldpricetoday #goldinvestment
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links
Yesterday morning at around 11 a.m., the buy price of gold on different platforms were as follows:
a) On Google Pay (digital gold) : ₹7,315
b) On IBJA website: ₹6,980
c) Lowest ask for SGB on NSE (issue: SGBFEB29XI) : ₹6,761 🏆
Do take advantage of the above arbitrage and for ZERO Brokerage Demat and Trading Account across all segments including Intraday, FnO, Delivery, IPO, Mutual Fund, ETF's, try out bit.ly/444mfL3
How to take advantage of this sir
need some clarification:
the person who is selling his SGBs on secondary market will always get more profit than the person who is buying them,
person selling his profit will be calculated by:- ASK PRICE- ISSUE PRICE and the person buying his profit will be calculated by:- FAIR VALUE- ASK PRICE (as per SGB analyser)...KINDLY EXPLAIN
That sliver play button with the dialogue we Indians love gold! 😘 Fantabulous!!! The level of thinking required for such, your writer/director who ever planned sure needs a raise!
Thank you for your kind appreciation. If you're keen to help out, pls contribute via this link: rpy.club/st/QHmktmhWWeK6
Important topic. No one has discussed it so clearly.
Glad you found it informative
Shankar ji you really outdid yourself today by posting video on this topic , none ever talked on it in such a detailed manner.
Very important yet very under discussed. Thanks 👍🙏
It's my pleasure! Glad you liked it
"It's correctly said that a true Guru shows you the path beyond just academics!"
Currently pursuing CA and one of my teachers suggested your channel, Really thankful to both of you to provide me with such a precious knowledge! ❤🎉
That's awesome! I'm glad you liked my work 🙌 .. and thank you to your teacher for having introduced us
Thanks for sharing such valuable information
My pleasure. Glad you found it informative!
As always, very helpful and well researched video Shankar ji. Thank You!
So nice of you. You're most welcome
Thank you, your videos are really helpful and not for promotional purposes. Continue making such good videos.
Most welcome
I always use sgbanalyzer to buy sgb from secondary market
Is there something similar for G Security?
Very Detailed information, infact it answers all the doubts I had while buying sgb in secondary market 6 months ago (unfortunately there isn't any single video/article that explains even half of this information in one place). Finally the specific website to analyse SGB is ultimate. Beautiful video, kudos👌
Thank you very much 🙌
Lot of hard work has gone in editing the video, how smoothly the graphics highlighted parts being explained by you, very clean, engaging, hats off to the editor. Your presentation and explanation skills too are commendable. Well done!!
Thank you very much. We treat UA-cam as an audio+visual medium hence we try to put optimum focus on the content, presentation, editing, images, thumbnail and supporting documents.
So much to take away from this video about secondary market... Sincerely thankful for your effort!!!
My pleasure! Glad it was helpful
Was waiting for this topic. The video was fantastic
Glad you liked it 🙌
Loved this detailed video, this deserves a subscribe!
Thanks for the sub!
Shankar Nath, keep up the good work and keep educating us. i learnt a lot of things from your video. all of your videos is purely informative with no BS and quick rich like other youtuber spreading around.
So nice of you. I'm happy you are finding my work useful & informative
Your videos are very different from others. Absolutely love them
Happy to hear that! 🙌
This is absolutely amazing. In a way you have found an arbitrage sir !
Thank you so much. Yes the discount is very much available.
Very well explained . Just what one needs to buy SGB.
Thank you! 🙌
Very well explained, to the point and impressive infographics. Thank you for the hard work
My pleasure. Glad you liked it!
Thanks Shankar for this valuable and very good analysis!
You're most welcome 🙌 Glad you liked it.
Thank you Shankar!! This was a great analytical video!!
My pleasure. Glad you liked it!
Very Informative. Thanks
You're welcome
Best video on SGB’s. Gold standard content 👌🏻
Wow, thanks!
Thank you Shankar Nath. 👍
Always welcome
Another pure Gold presentation.
Thanks again! 🙌
Every video on your channel is Gold. Have been buying SGBs since many years and it’s also my main way of investing in Gold. Keep sharing the golden nuggets! ❤
Thank you for your kind appreciation
Hlo i wanted to ask you , how long have been holding Sgb
Thanks.
Mr. Shanker, giving us an education on the gold..... based on your previous video I have done a purchase of 500 g of SGB and I'm sitting with 16% profit as on today. Okay, thanks for your suggestions. The quality of the content is superb as always. Thanks a lot.
Most welcome. Gold has done well in the last 3 years (+57% in 3 years) .. I am glad you found my work helpful & profitable
If an SGB is brought from secondary market and held till maturity, are the capital gains tax exempt irrespective of the holding duration. Say if the SGB is held for only 1 month and then it matures then is the capital gain happening in 1 month tax exempt?
very well explained Shankar
Thank you
@Shankarnath - A very good and informative video. I have a question for you. Let's say a bond is about to mature in a year or little less than a year and is available at a discount. When we purchase it, is it still tax exempt on maturity?
Most welcome. I'm sorry .. I don't understand taxes, kindly consult your tax advisor or a CA for the same.
Superb Video.
Thanks a lot
As always, very helpful, well researched information….Thank you!
Glad it was helpful!
Very informative and useful video sir. No one had covered it like you have done. 🎉
Glad you found it helpful!
Thanks Shankar for studying the arbitrage options and a big thanks to the guy who has setup the analyser framework. Just one question: The price used for the FV calculator is it the IMJA price?
Most welcome. With re: your query - the SGB Analyzer has an FAQ section that explains the source used for specific columns, kindly refer to the same pls.
@shankarnath
While buying from secondary market, one may need to pay brokerage. Can you tell us what are the brokerage rates charged on SGB in secondary market and whether arbitrage opportunity makes sense when one has to pay brokerage?
Brokerage depends from broker to broker so there is no general "rate" here. You'll have to check the pricing chart of your broker and estimate the numbers. The % also depends on the amount of purchase aswell i.e. if one is an order for 1 gram of gold versus the same order for 50 grams of gold has a different calculation.
To be honest, I thought this was be a clickbait. But was pleasantly surprised. Thanks for all the info!
P.S.: pls make a video on best platforms/ways to buy SGBs and Digital gold to get the best deal available. Thanks.
Thanks for the suggestion. There's a video on this already: ua-cam.com/video/9UWNdpryusM/v-deo.html
By far the best informative video on SGB !Thanks a lot for you info on SGB analyzer
My pleasure! Glad you liked it
Video is gold
Great video ; Thank you for posting such a great content
Most welcome. Glad you liked it
Very informative video, only thing to ask is during maturity do we get at IBJA price
Thanks. At maturity -- the price calculation methodology is listed in FAQs. Pls see point 21 -- www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658
Hi Shankar, in a previous video, you mentioned that you prefer gold ETFs over SGBs. Can you please elaborate the reason? Is it just that ETFs are easier for rebalancing, or something else?
You're right. I use more of gold ETFs because it allows me to be tactical with it & it's easier to rebalance .. but since the Finance Bill changes (ETF gains taxed at tax slab), the SGB proposition is a lot stronger. Personally, I am not into gold much as I've reached a stage in my portfolio where there is a sufficient amount of "safe assets" and every rupee is now going to equities most times
@@shankarnath thank you for your prompt reply.
Thanks for discussing this with such clarity. Great video, hoping to see more of such content always.
Welcome 🙌
What is the process of redemption of bonds on maturity when purchased from secondary market?
Pls review this document for specifics: m.rbi.org.in/Scripts/FAQView.aspx?Id=109
Thank You for sharing. Can you explain how is the settlement price of a particular series on maturity date being decided. Concern is, do we get fair value in comparison to Market Value on expiry. Thanks.
Most welcome. The price mechanism is available in the FAQs: www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658 .. for specifics, you can connect with them on email aswell -- sgb@rbi.org.in
@@shankarnath Thank You. It seems fair redemption policy to me... :)
Good video , thanks a lot for value info . Keep it up .. best wishes
Most welcome
Shankar nath you are great.keep doing your best work
Thank you so much
My man didn't even hesitate 3:39 to say Gold digger. Damn!! 👌🥇🔥
Thanks for this video. Can SGBs be considered a commodity diversification in the portfolio even if not backed by gold? or is it only a debt part of the diversification?
Most welcome. Yes, SGB serves asset diversification objectives even though it's financial (not physical) gold. It serves as the non-equity part of the portfolio with different properties as compared to bonds or real estate
One day we will have to sell too! At a discounted price??
Good knowledge on sgb taxation
Glad to hear!
Where does the 2.5% interest amount get transferred to when you buy sgb from secondary market?
Specifics are given here: www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=1658
Valuable information @Shankar.
Transparent too considering the disclaimer.
Thanks
@@shankarnath
If you buy from secondary market and sell it in secondary market before the maturity, will the gain attract any tax?
@@avnishthakkar5547 I'm not sure. Kindly consult your tax advisor on the same
Thanks for the video., but I don't understand why future interest payments are considering while calculating discount for secondary market purchase. We will get interest anyway in primary market as well right. Actual discount I see, less than 2% max while considering only gold price. Correct me if I am wrong
Most welcome. Let's go back to the illustration I made of the 4 boxes - A, B, C and D. You are trying to compare C & D while the entire video is about comparing A & D.
This is one of my favorite channels. Your content is great Shankar.. Thanks for everything you do.
Thank you. Glad you enjoy it!
As usual, another gold standard 🥇 content from Shankar on gold❤
Thank you very much 🙌
Excellent video!! ❤️ Is there any similar website for comparing GoI Bonds as well??
Thanks! I haven't come across something like this for GOI bonds but there will surely be something on these lines .. technically the YTM concept is based on this principle only.
Useful video
Glad you liked it
How the SGB interest is calculated and when it will be credited to the holder account.??
Pls refer to the FAQs: www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658
Are sovereign bonds bought fron secondary market taxable upon redemption?
Yes they are
Amazing sir please also tell how to invest in silver
Thanks for the suggestion
Namasthe sir ,simple thanks is in noway enough for your lucid ,extensive, exhaustive education you are imparting to the investing community.Very few impart such things without any profit motive.May God bless you with good health and happiness.
Namaste Rameshwar ji. Thank you for your kind words of appreciation and good wishes. I'm happy you like my work and it's helping you.
There is definitely a profit motive in my work and am looking at opportunities to up my income so that more money can be reinvested in research. And higher the quality of research, the more beneficial it will be for my viewers who will be able to earn more return on their hard-earned capital.
Glad for the reply Sir, mine like
people will definitely feel privileged to be a part of your idea of making profit and upscale income ,though it may be a minuscule sum,and ultimately benefits us.Good day 🙏🙏
That's a great video. Love your short and no-nonsense style of narration. I had a query, as SGBs are not backed by physical gold, by any chance can the government default on these? Sounds impossible though, but want to take your view
Yes, there is always a chance that the government defaults on it. It's possible though not probable currently
Thanks Shankar for this wonderful video. How and where does one check the SGB holdings if purchased from Bank?
Also when SGB matures, is it an auto closure or is it to be sold by the holder?
Most welcome. Apologies, I don't know these operational specifics. Perhaps this FAQ issued by the RBI can help: www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658
Further, RBI also has an email id (sgb@rbi.org.in) to receive queries from members of public on Sovereign Gold Bonds
Sir,
Can you please suggest some funds capturing these themes
Hi. SGBs can be bought via the primary or secondary market. I'm not aware of any fund that trades in SGBs
You just got a subscriber sir
Does gold price will drop in future
If yes when and at what price
Thanks! I'm sorry, I haven't come across a methodology that can predict the price of gold in the future. It can go up or it can go down.
thanks suggestion make a video on how to invest cash received when selling an ancestor property/ house comparing all option on an MSExcel file take the example of 10 lakh investment -also high lite pro corn of options
Thanks for the suggestion
Thank you shankar nath sir, good morning
Good morning to you too. Most welcome
This video is gold. 🎉
Thank you! 🙌
Hey Shankar,
I really admire the thumbnail you put on video. They are eye catching and fun to look at.
Disclaimer I do admire your content and the kind of awareness you create among investors.
Thank you
Thank you very much 🙌
Where and how to buy SBG at discounted prices, Sir?mean secondary market ?
There's a lot of information on this over the Internet. Request you to type the question you asked on Google search
Your view on Gullak Gold + scheme and it is safe?
Sorry, I haven't examined Gullak Gold +. I'll circle back if I do so in the future
Hi sir.. after purchasing SGB in secondary market .. Do we get subscription certificate??
Kindly use Google search for such queries & specifics
You do get the interest if you get it from secondary market
Is interest paid by RBI on issue price of SGB or on current market price of gold ?
This was covered in the video, kindly have a look at it.
On the initial investment
@@shankarnath thanks
@@gurukiranudupa947 thanks
Sorry this could be novice question.Since SGBs mature every 8 years, to project gold appreciation , should 8 year historical windows not be used rather than a 30 year average?
Well, I wouldn't do that and would instead prefer taking the average 8-year rolling period for many years as the long-term average benchmark. In the graph I presented, because 8-year rolling wasn't available I took the 10-year rolling return.
@@shankarnath Thanks for such quick engagement. No wonder you are the most liked personal financial educators out there.
what is that toggle switch called liquid-SGB, on the SGB analyzer page? thanks
Pls try it out on the website.
Nice topic coverage
Thanks
Thank you very much.
Most welcome
What if we buy SGB two days prior to interest credit date , do we get 2.5% ? . And then sell it .
I haven't read anything to the context that you won't get that interest if you held those bonds then. In case of doubt, please write to sgb@rbi.gov.in .. there are also some FAQs here: m.rbi.org.in/Scripts/FAQView.aspx?Id=109
Can we hold this even after maturity?
Pls refer to FAQs: m.rbi.org.in/Scripts/FAQView.aspx?Id=109 .. plus there are quite a few articles on SGB over the Internet, do have a look.
SGB bought from secondary market is mine to keep right, I don't have sell it in the market before maturity? Is my understanding correct sir?
Kindly refer to RBI FAQs on the same: www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658
I was not knowing that sgb are not backed by physical gold.. and is just a derivative product.. but then question arises what is the underlying asset of sgb??
Forgot to mention, kudos to you for bringing such insightful content.. really appreciated ❤
Thank you for your kind appreciation. There is no underlying asset .. so think of the SGB like any Govt. of India issued bond (G-Sec, T-Bill etc.)
@@shankarnath Oh ok..got it now..Thanks for replying..🙏
Always a treat for the brain.. the investment tips aside, the humor of your silver button and the thumbnail are just *chef's kiss'
Thanks!
Thank you very much Sourabh ji
Gold standard video😅
Thanks
Nice. Could you please do a primer on Rbiretaildirect, CG , SG bonds , yields, and secondary buying and selling on OM? No one is talking about these and I feel they are pretty useful for long term debt portfolio at no risk to capital.
Thanks for the suggestion
@@shankarnath 🙏
shankar when is the next ranch of SGB be released by RBI?
Please check for updates on the RBI website, they announce it there
@@shankarnath thanks shankar I'll check there
In most of the SGB liquidity is very low so it will be tough to sell and buy in that price.
Gold quality knowledge
Thank you!
Whn is next issue SGB ? Plz confirm
Pls drop email to sgb@rbi.org.in
Fantabulous ❤
Thanks 🤗
Can u please make a video on purchase of bonds from open market at discount
Thanks for the suggestion
Can SGB converted to physical gold ???
Kindly read: www.valueresearchonline.com/stories/52500/can-i-get-physical-gold-in-exchange-for-sgbs/
He very clearly said it’s a bond and not physical gold. It’s a derivative of the market and not worth investing as the promise the government gives can be withdrawn anytime and you will be the loser. Remember demonetisation!
Why is there no capital appreciation in physical gold?
There is. That's a typo from my end.
Hi Shankar, great video and quite informative. Would also have been great to see if you could show some data around the current market dynamics in all 3 major markets - equity, debt and gold being at all time highs and if we could make out what happens in such a case when looking at similar instances in the past - since ofcourse, the 3 can't keep on rising like this.
Regarding the tax - I believe that since the seller would already be paying tax on pre-mature sale, hence the buyer in secondary market would not have to, if they hold to maturity. By that logic, one can buy in secondary and not worry about the taxation.
Thanks for the suggestion
What do you think about buying gold bees?
Covered in a previous video, kindly watch: ua-cam.com/video/9UWNdpryusM/v-deo.html
How to redeem SGB after 5 years if it's in Demat account?
Also after 8 years, on maturity, is it redeemed by itself or is there a procedure to do it?
Hello. Kindly read 23, 24, 25 here: www.rbi.org.in/Scripts/FAQView.aspx?Id=109 .. specifics can be found on the Internet
5:40 damn just checked you LinkedIn how did you learn tamil?
0:20 was it 2.75% in 2015, and now it's 2.5%?
Yes, this was clarified in the video at 01:36
Very useful video as usual 👌
Thanks a lot 🙌
Hey Shankar, maybe you can try an intro..... Like those things which some channels have before each of their video.
Just puts in the mood.
Thanks for the suggestion
Seems some flaw in this calculation as it gives more weight on 2.5% interest so long maturity sbg will always be more valuable.
But you have to think about your holding duration for more benifits. Like you can hold for next 2-3 years only in that case calculation will be different.