Rising Investment in Sovereign Gold  Bonds

Idea Behind SGBs

The scheme aims to promote the online purchase of gold. The 8-year maturity offers 2.5% annual returns and capital gain exemption.

Benefits of SGB

SGB is the best way to invest in gold. It has sovereign backing, is tax-free, and is easy to trade.

The First Issue of SGB

In November 2015, the 1st issue was priced at Rs 2,684 per gm, and 860 kg of gold bonds were bought.

Current Demand of SGB

In the September 2023 tranche, 11.67 tonnes of bonds were bought at a record price of Rs 5,923 per gram, the highest in 65 tranches since November 2015.

A Strong Comeback

Data in the above image shows the strong comeback of SGBs.

Rising Trend of SGB

After 2 issues in FY23-24, the total net investment in SGBs outstanding is 120.6 tonnes. Over half of these purchases occurred in the last three & a half years.