Sovereign Gold Bond (SGB)

Sovereign Gold Bonds are government securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India. They are denominated in grams of gold and can be purchased instead of physical gold. Investors can buy these bonds through exchange at issue price, when RBI announces a fresh sale or they can purchase it immediately through exchange at current price like any other security. Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on exchange at current prices.


About Sovereign Gold Bonds

Benefits of SGB


There is no need for storage or safety of gold under this scheme, as the gold isn’t physically given to an investor immediately.

Sovereign guarantee

They come with sovereign guarantee, both on the capital invested and the interest. This makes it a secured investment.


SGB comes with a assured fixed rate interest per annum on the initial investment, making it a lucrative investment opportunity.


Investor can exit the bond at the end of 5th , 6th or 7th year.

Tax benefits

There is no TDS or Capital Gain arising on redemption of the bonds.

Exchange Traded

These bonds are listed and traded on the stock exchange making it easy to buy or sell.

Sovereign Gold Bond Features