Sovereign Gold Bond: Various investment platforms offer options to invest in SGB; how it is compared to physical gold

livemint.com:

Sovereign Gold Bond: SGBs provide a secure and convenient method for investing in gold, offering several benefits such as safety, interest income, capital appreciation, tax advantages, and liquidity. They are particularly suitable for long-term investors aiming for stability and protection against underperforming assets

Both households as well as institutional investors are increasingly attracted to SGBs owing to the plethora of benefits that come along with lucrative returns.

“Investing in Sovereign Gold Bonds is better than holding physical gold as it offers a blend of security, convenience, and financial potential. With the backing of the RBI, SGBs provide a shield against default risks, while their digital form eliminates storage concerns associated with physical gold. Embracing the future of gold investment with Sovereign Gold Bonds, it offers stability and security with convenience," said Puneet Maheshwari, Director, Upstox.

“As the Indian economy resiliently navigates through choppy waters, investments in SGB tranche is one of the safest harbors for the investors which they can hedge against the headwinds. With India traditionally inclined towards gold for domestic investments, we foresee the behavioral shift in buyers towards SGBs for investment-driven purposes, thus positioning physical gold as a lifestyle statement for adornment purposes," said Colin Shah, MD, Kama Jewelry.

Historically, investors have always looked to Gold for consistent and strong returns. «If we look at 2023 alone, despite geopolitical tension, a weaker dollar, and being volatile, Gold is currently traded close to its lifetime high price of 62,240/-, offering approximately 11.95% return in 2024 already. If we look at the long-term, its price