ENA Economy 2024-02-06 14:37:44 <p><span style="font-size:14px"><strong>New Delhi, Feb 6 (KNN)</strong> The government is planning to issue sovereign gold bonds worth an unprecedented Rs 29,638 crore in the fiscal year 2025, marking a notable increase of over 10 per cent from the current fiscal level.</span></p> <p><span style="font-size:14px">This move aims to accommodate the growing investor interest in paper gold, according to a senior finance ministry official, as reported by ET.</span></p> <p><span style="font-size:14px">In a remarkable turn, the gross collection from gold bonds surged beyond expectations, reaching Rs 26,852 crore (revised estimate) in FY24, significantly surpassing the initial projection of Rs 11,200 crore.</span></p> <p><span style="font-size:14px"> It (elevated gold bond issuance) was partly driven by a sharp increase in investor interest due to the safe haven status of gold amid global economic and geopolitical turmoil and expectations of a good appreciation of gold prices in the medium-to-long term, the official stated.</span></p> <p><span style="font-size:14px">Investors in gold bonds typically benefit from an annual interest payout, approximately 2.5 per cent, in addition to potential gains from the appreciation of the precious metal's prices.</span></p> <p><span style="font-size:14px">The net issuances of such bonds, after considering redemption, are estimated at Rs 26,138 crore in FY25, compared to Rs 25,352 crore in the current fiscal year.</span></p> <p><span style="font-size:14px">Introduced in late 2015, the government's gold bond and gold monetisation schemes aimed to discourage physical gold purchases and reduce the impact of gold imports on the current account deficit.</span></p> <p><span style="font-size:14px">The gross collection through these schemes is projected to reach Rs 31,168 crore in FY25, up from Rs 28,240 crore (revised estimate) in the current fiscal.</span></p> <p><span style="font-size:14px">Similarly, the net collection is expected to increase to Rs 27,571 crore in FY25, compared to Rs 26,653 crore the previous year.</span></p> <p><span style="font-size:14px">The sovereign gold bond scheme caters to investors viewing gold as an investment, providing them with an opportunity to purchase paper gold instead of physical gold.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36579 https://knnindia.co.in/news/newsdetails/economy/govt-plans-record-rs-29638-crore-sovereign-gold-bond-issue-in-fy25 2024-02-06 14:37:44 knnindia.co.in