Government mulls sovereign gold bond issue around Akshaya Tritiya
The government is planning to issue the fourth tranche of sovereign gold bonds around Akshaya Tritiya, according to sources in the know. Akshaya Tritiya, which falls on May 9 this year, is an important day for the bullion market as people consider buying gold on that day as auspicious. In the past two years, gold demand on this day stood at 25-30 tons. In 2013, around 50 tons of gold was estimated to have been sold on Akshay Tritiya.
The government has issued three tranche of sovereign gold bonds so far, with a total subscription of around 5,000 kg. Of this, the second tranche accounted for around 60 per cent. The third tranche evoked very poor response because it was issued in March last year when investors were more focused on investing in tax-saving products and gold price was also at ` 2,900 a gram for bonds, which was considered quite high.
Courtesy: Business Standard