How to Buy GOLD at upto 16% DISCOUNT | Arbitrage Opportunity on Sovereign Gold Bonds

[@shankarnath]

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

[@princesingh1651]

How to take advantage of this sir

[@Johnwickparabellum87]

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

[@boyfromthemountains]

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!

[@shankarnath]

Thank you for your kind appreciation. If you're keen to help out, pls contribute via this link: rpy.club/st/QHmktmhWWeK6

[@learnwithsaurab]

Important topic. No one has discussed it so clearly.

[@shankarnath]

Glad you found it informative

[@gauravshukla1916]

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 👍🙏

[@shankarnath]

It's my pleasure! Glad you liked it

[@ben-uy1ud]

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!!

[@shankarnath]

Thank you very much. We treat KZbin as an audio+visual medium hence we try to put optimum focus on the content, presentation, editing, images, thumbnail and supporting documents.

[@prabhatshukla8611]

I always use sgbanalyzer to buy sgb from secondary market

[@saikathbose8120]

Is there something similar for G Security?

[@CANamanJain22]

"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! ❤🎉

[@shankarnath]

That's awesome! I'm glad you liked my work 🙌 .. and thank you to your teacher for having introduced us

[@remoterish]

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! ❤

[@shankarnath]

Thank you for your kind appreciation

[@debasish._.1865]

Hlo i wanted to ask you , how long have been holding Sgb

[@pruthvikalal834]

As always, very helpful and well researched video Shankar ji. Thank You!

[@shankarnath]

So nice of you. You're most welcome

[@aparnadange7168]

Very well explained . Just what one needs to buy SGB.

[@shankarnath]

Thank you! 🙌

[@abishakeselvaraj1097]

So much to take away from this video about secondary market... Sincerely thankful for your effort!!!

[@shankarnath]

My pleasure! Glad it was helpful

[@vineetunny6719]

Thanks for sharing such valuable information

[@shankarnath]

My pleasure. Glad you found it informative!

[@sujeshgangadharan755]

Thank you, your videos are really helpful and not for promotional purposes. Continue making such good videos.

[@shankarnath]

Most welcome

[@makarandgajare1537]

Your videos are very different from others. Absolutely love them

[@shankarnath]

Happy to hear that! 🙌

[@sujithps4810]

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👌

[@shankarnath]

Thank you very much 🙌

[@firekid5790]

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.

[@shankarnath]

So nice of you. I'm happy you are finding my work useful & informative

[@lawrencesequeira5374]

Very well explained, to the point and impressive infographics. Thank you for the hard work

[@shankarnath]

My pleasure. Glad you liked it!

[@JatinV1]

This is absolutely amazing. In a way you have found an arbitrage sir !

[@shankarnath]

Thank you so much. Yes the discount is very much available.

[@kakashisenpai99]

Was waiting for this topic. The video was fantastic

[@shankarnath]

Glad you liked it 🙌

[@rakeshkrishnan4780]

Thanks Shankar for this valuable and very good analysis!

[@shankarnath]

You're most welcome 🙌 Glad you liked it.

[@bhaveshpatel498]

Another pure Gold presentation.

[@shankarnath]

Thanks again! 🙌

[@pravinnayak1306]

Very informative video, only thing to ask is during maturity do we get at IBJA price

[@shankarnath]

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

[@adityauphade5918]

Loved this detailed video, this deserves a subscribe!

[@shankarnath]

Thanks for the sub!

[@sayanmahapatra2830]

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?

[@ravipratap2017]

need more clarity on this

[@prabhjot141077]

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.

[@shankarnath]

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 -- [e-mail]

[@prabhjot141077]

@@shankarnath Thank You. It seems fair redemption policy to me... :)

[@justinterested]

Thank you Shankar!! This was a great analytical video!!

[@shankarnath]

My pleasure. Glad you liked it!

[@shoshinsamurai7901]

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?

[@shankarnath]

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

[@rajagopalram7783]

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?

[@shankarnath]

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.

[@maulik2500]

Best video on SGB’s. Gold standard content 👌🏻

[@shankarnath]

Wow, thanks!

[@akkii9.5]

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?

[@shankarnath]

Kindly refer to RBI FAQs on the same: www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658

[@sinu1241]

Hi sir.. after purchasing SGB in secondary market .. Do we get subscription certificate??

[@shankarnath]

Kindly use Google search for such queries & specifics

[@chandranandhar3716]

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?

[@shankarnath]

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

[@chandranandhar3716]

@@shankarnath thank you for your prompt reply.

[@RamKumar-li8mq]

By far the best informative video on SGB !Thanks a lot for you info on SGB analyzer

[@shankarnath]

My pleasure! Glad you liked it

[@LUXESTATEX]

Video is gold

[@Aspn2415]

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

[@shankarnath]

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.

[@santoshkumarch4583]

Where and how to buy SBG at discounted prices, Sir?mean secondary market ?

[@shankarnath]

There's a lot of information on this over the Internet. Request you to type the question you asked on Google search

[@himanshuJakhmola-n8g]

Awesome video...thanks

[@shankarnath]

Glad you liked it!

[@ramakrishnas114]

Very Informative. Thanks

[@shankarnath]

You're welcome

[@arthd2299]

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?

[@shankarnath]

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.

[@arthd2299]

@@shankarnath Thanks for such quick engagement. No wonder you are the most liked personal financial educators out there.

[@nachiketkelkar6882]

if I buy a SGB from stock market, 1) Will I receive the 2.5% 2) If I hold them to maturity will that be tax free (say the bond was issued in 2021, and I bought it in 2023 and I hold on to it till 2029) Thanks in advance!!

[@anubhavagrawal3963]

Thank you Shankar Nath. 👍

[@shankarnath]

Always welcome

[@VikramPrethesh]

@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?

[@shankarnath]

Most welcome. I'm sorry .. I don't understand taxes, kindly consult your tax advisor or a CA for the same.

[@gsnayak06]

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.

[@shankarnath]

Thanks for the suggestion

[@gsnayak06]

@@shankarnath 🙏

[@thedefender2191]

Shankar nath you are great.keep doing your best work

[@shankarnath]

Thank you so much

[@harish361995]

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

[@shankarnath]

Yes, there is always a chance that the government defaults on it. It's possible though not probable currently

[@anureddy9368]

You just got a subscriber sir Does gold price will drop in future If yes when and at what price

[@shankarnath]

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.

[@PuranjayJain]

Very informative and useful video sir. No one had covered it like you have done. 🎉

[@shankarnath]

Glad you found it helpful!

[@saikathbose8120]

Excellent video!! ❤️ Is there any similar website for comparing GoI Bonds as well??

[@shankarnath]

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.

[@yahanaz]

What do you think about buying gold bees?

[@shankarnath]

Covered in a previous video, kindly watch: kzbin.info/www/bejne/b4a6f5emp96oqa8

[@piyushjain4349]

Amazing sir please also tell how to invest in silver

[@shankarnath]

Thanks for the suggestion

[@solaiyappanmeenakshisundar6801]

Your view on Gullak Gold + scheme and it is safe?

[@shankarnath]

Sorry, I haven't examined Gullak Gold +. I'll circle back if I do so in the future

[@tech_azadi]

What is the process of redemption of bonds on maturity when purchased from secondary market?

[@shankarnath]

Pls review this document for specifics: m.rbi.org.in/Scripts/FAQView.aspx?Id=109

[@vishwa1]

This is one of my favorite channels. Your content is great Shankar.. Thanks for everything you do.

[@shankarnath]

Thank you. Glad you enjoy it!

[@srinaga1975]

Great video ; Thank you for posting such a great content

[@shankarnath]

Most welcome. Glad you liked it

[@nagarajpipalli7595]

Can u please make a video on purchase of bonds from open market at discount

[@shankarnath]

Thanks for the suggestion

[@kakashisenpai99]

Can we hold this even after maturity?

[@shankarnath]

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.

[@parthpatel-mu1wz]

How the SGB interest is calculated and when it will be credited to the holder account.??

[@shankarnath]

Pls refer to the FAQs: www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1658

[@munnawarnawaz]

Sir discount to fair value for sgb feb32IV is only 0.72% ? Should i invest in it ?

[@yusufvohra4449]

Good knowledge on sgb taxation

[@shankarnath]

Glad to hear!

[@saikrishnasunkari1822]

very well explained Shankar

[@shankarnath]

Thank you

[@SandipanNaths]

As usual, another gold standard 🥇 content from Shankar on gold❤

[@shankarnath]

Thank you very much 🙌

[@VJeducation999]

Is interest paid by RBI on issue price of SGB or on current market price of gold ?

[@shankarnath]

This was covered in the video, kindly have a look at it.

[@gurukiranudupa947]

On the initial investment

[@VJeducation999]

@@shankarnath thanks

[@VJeducation999]

@@gurukiranudupa947 thanks

[@vijayritanshu]

You do get the interest if you get it from secondary market

[@bhishamchander3575]

Good video , thanks a lot for value info . Keep it up .. best wishes

[@shankarnath]

Most welcome

[@dhvanilbhatt]

As always, very helpful, well researched information….Thank you!

[@shankarnath]

Glad it was helpful!

[@rangaiit03]

Sir, Can you please suggest some funds capturing these themes

[@shankarnath]

Hi. SGBs can be bought via the primary or secondary market. I'm not aware of any fund that trades in SGBs

[@sumitkrishn60]

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.

[@shankarnath]

Thanks for the suggestion. There's a video on this already: kzbin.info/www/bejne/b4a6f5emp96oqa8

[@pruthviv5093]

@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?

[@shankarnath]

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.

[@manindermann8164]

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

[@shankarnath]

Thanks for the suggestion

[@meetbhalodi11]

One day we will have to sell too! At a discounted price??

[@DrVishalJogi]

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?

[@shankarnath]

Hello. Kindly read 23, 24, 25 here: www.rbi.org.in/Scripts/FAQView.aspx?Id=109 .. specifics can be found on the Internet

[@speedster4459]

Are sovereign bonds bought fron secondary market taxable upon redemption?

[@shankarnath]

Yes they are

[@justanythingmeaningful4557]

Hello Sir, Can we do SIP investment in gold bonds (MONTHLY or YEARLY , or we have to buy completely in one go when, RBI issues go live. Should I have to purchase different issue every year, or I can buy more units of the issue which I invested in forthe first time. I mean we cannot have all the money to buy, at one go.

[@shankarnath]

I'm sorry, I have no idea. Please connect with a platform that's offering gold bonds for specifics. A search on Google will get you platforms who are offering this

[@BhupenderSingh-to3nk]

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.

[@shankarnath]

Thank you

[@shankarnath]

Thank you very much 🙌

[@kr48jewel]

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.

[@shankarnath]

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.

[@kr48jewel]

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 🙏🙏

[@Manthan_53]

Thanks for sharing SGB Analyser, indeed a great tool. I did this type of analysis last week and found many SGB trading at premium. On finding reason for same noted that as govt. is not planning to issue new SGB (as per news) people are buying at premium. And same we can easily see on link you shared.

[@shankarnath]

Most welcome. On premium -- yes, I think so too.

[@maverickrahul104]

Excellent!!

[@shankarnath]

Thx!

[@Apollo0108]

Thanks for discussing this with such clarity. Great video, hoping to see more of such content always.

[@shankarnath]

Welcome 🙌

[@ankur3128]

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??

[@ankur3128]

Forgot to mention, kudos to you for bringing such insightful content.. really appreciated ❤

[@shankarnath]

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.)

[@ankur3128]

@@shankarnath Oh ok..got it now..Thanks for replying..🙏

[@ramamoorthyh]

This video is gold. 🎉

[@shankarnath]

Thank you! 🙌

[@VidyaPhulwaria]

Fair value me 4.5% discount but gold price -9.4% buy kre ya nhi please guide

[@sourabhmayekar3354]

Always a treat for the brain.. the investment tips aside, the humor of your silver button and the thumbnail are just *chef's kiss'

[@shankarnath]

Thanks!

[@shankarnath]

Thank you very much Sourabh ji

[@skreddy0440]

Thank you shankar nath sir, good morning

[@shankarnath]

Good morning to you too. Most welcome

[@demongamingcodm]

Where does the 2.5% interest amount get transferred to when you buy sgb from secondary market?

[@shankarnath]

Specifics are given here: www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=1658

[@jainaaush]

shankar when is the next ranch of SGB be released by RBI?

[@shankarnath]

Please check for updates on the RBI website, they announce it there

[@jainaaush]

@@shankarnath thanks shankar I'll check there

[@atulprajapati3916]

What if we buy SGB two days prior to interest credit date , do we get 2.5% ? . And then sell it .

[@shankarnath]

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 [e-mail] .. there are also some FAQs here: m.rbi.org.in/Scripts/FAQView.aspx?Id=109

[@kmasky]

Whn is next issue SGB ? Plz confirm

[@shankarnath]

Pls drop email to [e-mail]

[@ritzmr9607]

Gold quality knowledge

[@shankarnath]

Thank you!

[@gdydbjsiuxvsnsjdx]

Awesome❤❤❤

[@shankarnath]

Thank you!

[@sidl834]

Thank you very much.

[@shankarnath]

Most welcome

[@satejpatil875]

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.

[@shankarnath]

Thanks for the suggestion

[@kamiltisekar259]

Can SGB converted to physical gold ???

[@shankarnath]

Kindly read: www.valueresearchonline.com/stories/52500/can-i-get-physical-gold-in-exchange-for-sgbs/

[@ashdandan]

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!

[@k.phemraj7378]

Fair value has intrest added, so how can it actually be called discount compared to SGB s from primary markets

[@shankarnath]

I'm pretty sure the fair value in that table is a comparison between the secondary SGB with box A & box B i.e. non-SGB options. The discount is compared to box A & box B. Curious to know -- what made you deduce that this is a difference between SGB primary and SGB secondary market? The issue price has not been factored into anything except the calculation of PV of future interest payments.

[@k.phemraj7378]

Thanks for the clarification 🎉

[@lemedico]

0:20 was it 2.75% in 2015, and now it's 2.5%?

[@shankarnath]

Yes, this was clarified in the video at 01:36

[@shaikalisha5015]

Useful video

[@shankarnath]

Glad you liked it

[@gat961]

My man didn't even hesitate 3:39 to say Gold digger. Damn!! 👌🥇🔥

[@shashankdesaiii]

Nice topic coverage

[@shankarnath]

Thanks

[@VidyaPhulwaria]

GOod. Information

[@shankarnath]

Thanks

[@VidyaPhulwaria]

@shankarnath me SGB me invest chahata tha pr tarika pata nhi tha thanks

[@nareshmungilwar8077]

what is that toggle switch called liquid-SGB, on the SGB analyzer page? thanks

[@shankarnath]

Pls try it out on the website.

[@swastiksanmay2315]

Gold standard video😅

[@shankarnath]

Thanks

[@nikhilabhyankar8031]

Why is there no capital appreciation in physical gold?

[@shankarnath]

There is. That's a typo from my end.