Gold Buying New Rule: Even though the government’s borrowing cost was increasing under this scheme and this scheme was proving to be expensive for the government. But, common investors were getting strong returns from this scheme.
Gold Buying New Rule: Buying gold has now become difficult for the common man. The rising gold prices every day have troubled the people. Meanwhile, the government is going to take such a decision, due to which the common man will be directly affected.
In fact, when the media questioned the Finance Minister on the SGB scheme after the budget on Saturday, the answer came from the Finance Minister that the government is on the way to close this scheme. Let us know what this scheme is and how the common man will stop getting cheap gold due to its closure.
Which scheme is this?
The scheme we are talking about is called the Sovereign Gold Bond (SGB) Scheme. This scheme was started by the Central Government in 2015, the purpose of which was to give gold to the common people at cheaper rates than the market price. Apart from this, under this scheme, the government was also emphasizing on reducing the purchase of physical gold and promoting investment in digital gold.
However, Finance Minister Nirmala Sitharaman, while talking to the media after the budget on February 1, said that the government has to pay more interest on borrowing under this scheme, which is increasing its financial burden. This is the reason why the government is on the way to shut down this scheme.
Investors were getting strong benefits
Even though the government’s borrowing cost was increasing under this scheme and this scheme was proving to be expensive for the government. But, common investors were getting strong returns from this scheme. According to ET report, in the last few years, the SGB scheme had given investors a return of up to 160 percent. However, now it has become difficult for the government to continue it from the economic point of view.
New schemes for investors
Even though the government is going to discontinue the Sovereign Gold Bond, the government is considering other new schemes, which include gold ETFs (exchange-traded funds) and other financial products. These schemes provide investors a safe and simple way to invest in gold. Along with this, the government can also take measures to maintain control over gold imports, so that gold prices remain stable in the domestic market.
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