The Sovereign Gold Bond programme is aimed at curbing the import of the yellow metalBonds linked to the market price of gold under the government's Sovereign Gold Bond scheme are available for purchase till Friday.

This is an eighth tranche of the gold bond scheme, in which the RBI issues gold bonds on behalf of government.

There will be four additional tranches this financial year, each of which will also be available for five days.

For the current series, an issue price of Rs 5,177 per unit is applicable.

One unit is equivalent to the price of one gram of gold in the spot market.

(Also Read: Sovereign Gold Bonds Open For Subscription Till Friday)But how is this price arrived at?The issue price is calculated using a simple average of prices provided by Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.

For example, an issue price of Rs 5,177 per unit is applicable to the eight tranche of gold bonds.Issue Prices Of Series I-VIII Gold Bonds  Series (2020-21)DatesIssue PriceIApril 20 - April 24Rs 4,639IIMay 11 - May 15Rs 4,590IIIJune 8 - June 12Rs 4,677IVJuly 6 - July 10Rs 4,852VAugust 3 - August 7Rs 5,334VIAugust 30 - September 4Rs 5,067VIIOctober 12 - October 16Rs 5,051VIIINovember 9 - November 13Rs 5,177Closing rates of three days prior to the first day of subscription are taken into account, to arrive at this simple average.DateClosing Price (Per Gram)November 4Rs 5,247.30November 5Rs 5,153.20November 6Rs 5,130.60AverageRs 5,177.03(Source: ibjarates.com)For the eight tranche, the issue price of Rs 5,177  is calculated based on IBJA rates of November 4-6. Launched first in 2015, the Sovereign Gold Bond scheme is aimed at enabling investment in non-physical gold, wherein the RBI issues bonds linked to the market price of gold on behalf of Government of India. Each unit of the bond in the SGB scheme represents the current value of a gram of gold.

The bonds have a maturity period of eight years.