If you wish to invest in gold with a long-term perspective and are looking to buy physical gold or gold ETFs, here is an alternative for you. The second tranche of the sovereign gold bond (SGB) scheme is now open for subscription and will close on Friday.
SGBs are government securities denominated in gold gm, wherein investors can pay the issue price in cash and redeem the bonds in cash after eight years, in this case, at the then prevailing market price of gold.
SGBs are government securities denominated in gold gm, wherein investors can pay the issue price in cash and redeem the bonds in cash after eight years, in this case, at the then prevailing market price of gold.
The scheme differs from ETFs and physical gold buying, as it offers an interest rate of 2.75 per cent per annum, which is paid semi-annually. The scheme was first introduced by prime minister Narendra Modi on November 5, 2015.
