Sovereign Gold Bond: Various investment platforms offer options to invest in SGB; how it is compared to physical gold

Sovereign Gold Bond: SGBs provide a secure and convenient method for investing in gold, offering several benefits such as safety, interest income, capital appreciation, tax advantages, and liquidity. They are particularly suitable for long-term investors aiming for stability and protection against underperforming assets

SGB vs physical gold

Both households as well as institutional investors are increasingly attracted to SGBs owing to the plethora of benefits that come along with lucrative returns.

“Investing in Sovereign Gold Bonds is better than holding physical gold as it offers a blend of security, convenience, and financial potential. With the backing of the RBI, SGBs provide a shield against default risks, while their digital form eliminates storage concerns associated with physical gold. Embracing the future of gold investment with Sovereign Gold Bonds, it offers stability and security with convenience,” said Puneet Maheshwari, Director, Upstox.

“As the Indian economy resiliently navigates through choppy waters, investments in SGB tranche is one of the safest harbors for the investors which they can hedge against the headwinds. With India traditionally inclined towards gold for domestic investments, we foresee the behavioral shift in buyers towards SGBs for investment-driven purposes, thus positioning physical gold as a lifestyle statement for adornment purposes,” said Colin Shah, MD, Kama Jewelry.

Historically, investors have always looked to Gold for consistent and strong returns. “If we look at 2023 alone, despite geopolitical tension, a weaker dollar, and being volatile, Gold is currently traded close to its lifetime high price of 62,240/-, offering approximately 11.95% return in 2024 already. If we look at the long-term, its price has more than doubled in the last 10 years. The SGb (Sovereign Gold Bonds) scheme is an ideal investment opportunity for investors willing to hold on to their investments to seek capital appreciation in the long run,” said Nish Bhatt, Founder & CEO, Millwood Kane International.

Various investment platforms offering options to invest in SGB

Investing in Sovereign Gold Bonds is easily accessible through designated banks such as SBI and HDFC Bank. Interested individuals can apply for these bonds via the respective bank’s website under the ‘Investment’ tab.

Furthermore, several platforms like Upstox, Zerodha Kite, Groww, and others offer investors the opportunity to invest in Sovereign Gold Bonds.

How to buy gold bonds online in India

-Log in to your net banking account.

-Navigate to the ‘eServices’ section and locate the ‘Sovereign Gold Bond’ option.

-Review the terms and conditions carefully, then click on ‘Proceed’.

-Complete the registration form with the required information and click ‘Submit’.

-In the purchase form, specify the quantity of subscription along with the nominee’s details.

-Once all details are entered, click on ‘Submit’ to finalize your investment.

SGB Tranche 2023-24 Series IV opened for subscription on February 12. The five-day window will close on February 16.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.