Is Sovereign Gold Bond A Wise Investment Decision?

For most Indians, an investment in gold is more valuable than stocks and mutual funds. Nevertheless, investing in physical gold has its disadvantages. A solution to this problem is sovereign gold bonds (SGB). Vardan Pandhare elucidates the significance of SGBS in this special report

- Vardan Pandhare

Gold has long been regarded as one of the top investment prospects in India. It is important to most festivals and festivities and is relevant to the culture. Many people think that gold is lucky and prosperous. It does, however, have some restrictions, particularly if purchased as jewellery, coins or bars. For starters, physical gold is difficult to keep securely. Gold might be unsafe to store at home while a bank locker can be expensive. Also, there are other expenses like making charges. All of these inconveniences are avoided by sovereign gold bonds, which also provide improved investment prospects, security and storage simplicity. This gold bond programme is a great alternative to actual gold.

Sovereign Gold Bonds

In November 2015, the Indian government unveiled the sovereign gold bond (SGB) plan as a substitute for actual gold for investors. SGB keeps track of the asset’s export-import value while also ensuring transparency. Government securities known as SGBs are regarded as secure. They are valued in multiples of a gram of gold. SGBs have seen a sharp rise among investors because they are seen as a viable alternative to actual gold. All you need to do to obtain an SGB is to speak with a SEBI-authorised agent or broker. The corpus (as per the current market value) will be transferred into your registered bank account once you have redeemed the bond.

Key Features of SGBs

Some of the significant key features of sovereign gold bonds are: