Sovereign Gold Bonds

Sovereign Gold Bonds

Sovereign Gold Bonds, or SGBs, are government securities denominated in weight of gold, in particular grams of the yellow metal. In effect, they are an alternative way to invest in gold without actually holding physical gold. The bonds are issued by the Reserve Bank of India (RBI) on behalf of the government of India. In simple terms, it is a way to invest in gold without worrying about the risks of holding gold in its physical form. It also comes without the additional ‘making charges’ for gold jewellery. Moreover, investors in SGBs not only get a fixed rate of interest but may also benefit from the appreciation in the price of gold.