Is it good to invest in the sovereign gold bond?

sovereign gold bond


Is it worth investing in gold? Get the answer to this question in the given article. As per the tradition followed by the people, it is believed that an investment in gold is always a good idea. But the investment made in physical gold sometimes shows its downsides. At some point, you will have to pay high charges for jewellery made of gold. Also, the storage to keep the gold safe is no easy task to accomplish. Both the downsides will affect the decision, that is consideration of buying gold.

Top reasons that make the gold bond the best investment option

Look at the top reasons that make the sovereign gold bond a good option for investment. Let us tell you all the factors in detail.

• Fixed interest rates

The SGB permits you to purchase the gold in either paper or digital format. It indicates that you will not get physical gold by investing in the scheme. You get the gold bond. One of this bond’s major benefits is the fixed interest rate that they earn annually. With the ups and the downs in the gold price, you will get the annual interest rate with a guarantee.

• Long term investment

The investment maturity in the gold bonds is eight years instead of the current five years. If you are an investment expert, you understand the longer lock-in periods that help you to be an experienced and disciplined investor. In this way, you can achieve the investment objectives.

• Easy to trade

Many different investment options face the problem of liquidity, and gold bonds are still liquid. You can trade with ease or convenience on the stock exchanges for a particular duration.

• Cost-efficient

By investing into the SGB is considered a cost-efficient method than investing in gold products or physical gold, such as Gold ETFs. There are no huge changes involved in the SGB.

• Taxation benefits

There is no deduction of the tax on the applicable interest on the SGB. You can receive the in-taxation benefits if the transferred SGB complete before the maturity rates. Suppose you decide to make the Fixed deposits or sell the exchange of the bonds after the lock-in period of the 5 years. You will have to pay taxes on the losses or the gains.


It is determined that it is good to invest in the sovereign gold bond. The government finds some drawbacks to the sovereign gold bond. But there are the many benefits of investing in the sovereign gold bond that we will tell you about. It is concluded that the SGB is an affordable and reliable option. It has been an easy way to invest in the Sovereign gold bond over the years. Hope the given information in the article is beneficial for you? Share it among others if you liked the information about the sovereign gold bond.

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