Sovereign Gold Bonds (SGB)

Sovereign Gold Bonds are government securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India. 

They are denominated in grams of gold and can be purchased instead of physical gold. Investors can buy these bonds through exchange at issue price, when RBI announces a fresh sale or they can purchase it immediately through exchange at current price like any other security. Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on exchange at current prices.

• SGB is the only gold investment which offers a fixed return annually (ROI disclosed at time of issue) on face value of bond
• SGB is easy to store and easy to liquidate compared to other forms of investments
• It provides transparency in dealing and assurance in quality
• Sovereign guarantee for redemption amount and interest payment.

As a low-risk investment, it is perfect for investors with low-risk appetite. It also gives you a fixed income bi-annually. Compared to physical gold, the cost to purchase or sell SGBs is quite low. The expense of buying or selling the SGB is also nominal in comparison to the physical gold