Sovereign Gold Bond (SGB)

SGBs are government securities denominated in grams of gold.
They are substitutes for holding physical gold
Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
The Bond is issued by Reserve Bank on behalf of Government of India.
The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption.
The SGB offers a superior alternative to holding gold in physical form.
The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest.
Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
A customer can apply online through the website of the listed scheduled commercial banks.

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