Just wondering why there is no more discount in prices from the SGB face value in secondary market? (I didnt’t mean the Rs. 50 discount provided from primary issue)
Does anyone know when this discount disappeared- I mean which month/ year it disappeared.
The reason I am asking is- I once bought SGB’s in March 2022 (SGBAug25 issue with face value 5335) for around Rs. 4750 via Zerodha, but now all the SGB issues are trading over Rs. 6100 irrespective of face value. Is it due to supply/demand issue, and since when this trend is being seen?
I think you are simply referring to discount over face value of SGB (and not discount over market price)
This is not a correct way to look at it. SGB trades based on current price of gold and practically has no relation to face value. Also final redemption happens based on market price of gold and not face value, so comparing current price with face value does not make sense (only interest is calculated based on face value).
In general if gold prices dips, you will find some SGB trading below face value. Currently as Gold is rallying, most SGB are trading above FV.
Hope this helps.