Sovereign Gold Bond (SGB)

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Sovereign Gold Bond Scheme since being launched has become a very popular gold savings scheme. The unique thing of these bonds are they allow you to invest indirectly by tracking gold prices and also gives you an interest rate.

Why investors should invest in the Sovereign Gold Bond Schemes?

The SGBs as they are popularly called are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

There are several advantages of investing in SGBs, including the fact that it tracks gold rates and also is safe on account of govt backing. Apart from this they also offer interest rates, which is rather unique.

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