Open a Demat Account - Invest in Gold through Sovereign Gold Bonds

  • Posted By :
  • Saturday Nov 24, 2018

Gold is considered an auspicious metal in India. Now, you can invest in the yellow metal without having to spend on physical units of gold. Gold purchase is now more convenient, comfortable and safe. With Sovereign Gold Bonds (SGBs), you no longer need to buy physical gold to invest in it.

What are SGBs?

SBGs, issued by the Reserve Bank of India, are government securities denominated in grams of gold. The value of one bond represents one gram of gold and can be held in an investor's demat account. Your investment value in SGBs can range from one kilogram to four kilograms of gold (in a given financial year). SGBs come with a maturity period of eight years, with exit option in the fifth, sixth and seventh year. 

Benefits of investing in SGB rather than Physical Gold

SGBs offer a superior alternative to investing in physical gold. To understand why here is a case in point. Physical units of gold can be sold anytime. The returns you receive will be the then price of gold minus the making charges. However, by investing in SGBs, you can earn capital gains through appreciation in gold prices as well as additional interest earnings.

Additionally, the risk of theft and purity concerns, associated with physical gold does not apply to SGBs. SGBs can also be used as collateral while applying for loans. 

The process of investing in SGBs

The Government of India recently launched the Sovereign Gold Bond (SGB) scheme. They are open to subscription beginning October 15th 2018. The bonds will be issued every month from October 2018 to February 2019. 

Calendar of Issuance -



Date of Subscription

Date of Issuance


2018-19 Series II

October 15-19, 2018

October 23, 2018


2018-19 Series III

November 05-09, 2018

November 13, 2018


2018-19 Series IV

December 24-28, 2018

January 01, 2019


2018-19 Series V

January 14–18, 2019

January 22, 2019


2018-19 Series VI

February 04-08, 2019

February 12, 2019

They will be sold through banks, designated Post Offices, Stock Holding Corporation of India Limited (SHCIL) and stock exchanges. You can purchase SGBs directly or through agents of all the institutions above. The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in demat form with depositories can be traded in stock exchanges) The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006. Partial transfer of bonds is also possible.

The KYC process of buying SGB is similar to that of buying physical gold. customers can apply online:

  1. Login > More Products > Sovereign Gold Bonds > Click on Buy > IPO/SGB/ETF/NCD > SGB/ETF Name > Select the required SGB from drop down
  2. Enter “Quantity” in grams and click on “Calculate” button > Then click on “Confirm” button
  3. Tick on the “I have read & understood the Terms & Conditions and agree to abide by them” check box and then click on “Confirm“ button
If you still haven’t, open an account with to be able to invest in SGB easily.


This year invest in the yellow metal without stressing about its safety, purity and making charges. Gold is about to get a whole new sheen thanks to SGBs.


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