Is Sovereign Gold Bond (SGBs) a good investment?

Raisin George . Episode 4 . 1:16
Gold coins

The government has opened a new tranche of the Sovereign Gold Bond Scheme, available from February 12th to February 16th, 2024. This scheme offers a unique way to invest in gold backed by the government, eliminating the need for physical storage. Key advantages include a 2.5% annual interest, value appreciation alongside gold prices, and tax-exempt gains if held to maturity (8 years). These bonds can also serve as collateral for loans. An additional benefit for online subscribers paying digitally is a reduction in the issue price by ₹50 per gram. Historically, these bonds have delivered an average annual return of 13.7%, combining assured interest and gold price appreciation.

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