Buying Sovereign Gold Bonds (SGBs) From The Secondary Market: All You Need To Know

Sovereign Gold Bonds are financial instruments with underlying as gold and hence a gold investment form issued by the RBI on behalf of the government of India. One bond unit is equivalent to 1 gm and other than the offer made when it is open for subscription like as in the current time when SGB 2021-22 Tranche 4th is open, you also have an option to buy it from the secondary market just like a scrip.

Say for instance: CENTRAL GOVT SGB 16OT17 S3 2.5 (SGBT10) where SGBT10 is the quote for the security and it as per the latest data shows volume transaction at just 1 while the price quoted is Rs. 4729 per gm. The lifetime low and lifetime high for SGBs have been in the range of Rs. 2426-Rs. 5500. This security was listed on the NSE.

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