The government recently announced an eight-fold hike in the annual investment cap in Sovereign Gold Bonds per individual to 4 kgs from 500 grams. It also promised measures to improve liquidity and tradability of the bonds which would be made available ‘on tap’.
So, should you take the bait and go for a substantial hike in your SGB holding? Will it be a good investment keeping future outlook of gold in mind? And if so, how much of your portfolio should be in physical gold or SGB proceeds of which are invested in the yellow metal?
Investment advisors and commodity experts believe SGBs should be a preferred route for investment instead of the physical metal for those who are keen to increase their gold holding.
