The government has garnered Rs 2,540.87 crore through the Series 1 of FY22 offering, the second-highest by quantity only to August 2020’s record 6.35 tonnes.
That investors have taken to SGBs in a big way to invest in paper gold is evident in the FY21 subscription of 32.3 tonnes accounting for 51.1% of the total 63.3 tonnes subscribed since inception in late FY16. Taking the latest series figure (FY22 May series), the total quantity of gold subscribed through the bonds is 68.6 tonnes.
“In one fiscal alone (FY21) the subscription quantum is over half of the total quantity subscribed since inception,” said Debajit Saha, lead analyst , Refinitiv Metals. “This speaks of rising investor interest in the bonds, which have attracted higher interest than gold ETFs.”
Market veterans like Naveen Mathur, a director of Anand Rathi Share and Stock Brokers, expects interest in the bonds to “rise” after abating “somewhat” since gold slipped from an issue price record of ?5,334 a gram on August 11 last year to around Rs 4,912 per gram on February 9 this year.
Investor interest revived again in the 12th series issuance in March this year when the price dipped to Rs 4,662 a gram on the ninth of that month. Total quantity of SGBs subscribed was 3.23 tonnes, up from the previous series’ 1.22 tonnes.