Sovereign Gold Bonds: Why Should You Invest in Them?

Sovereign Gold Bonds: Why Should You Invest in Them?

The History of Gold

Globally, 50 years ago, currency notes were backed by real gold! As people become more disillusioned with the paper money issued by countries to drive liquidity into global markets, gold as a store of value and investment becomes increasingly significant. India is the world’s largest gold consumer, importing INR 2.5 lakh crore in 2020-2021 alone. 

Why buy physical gold as a form of investment and storage of your wealth when sovereign gold bonds are available! It is one of the best bonds to invest in India.

Why SGB?

The Reserve Bank of India (RBI) issues gold bonds as government securities that are backed by physical gold owned by the Government of India. The price of SGBs is approximately equal to the price of physical gold.

An individual or HUF can apply for a minimum of 1 gram and a maximum of 4 kg in gold bonds in a single year. The maximum threshold for entities, trusts, and companies, on the other hand, rises to 20 kg. SGB similarly pays around 2.5% annual interest rate and has an 8-year maturity.

Individuals can invest in SGBs and keep them in their Demat account instead of purchasing actual gold.

What are the advantages of buying gold bonds?

  • Lowest risk 

The Reserve Bank of India (RBI) issues SGBs on behalf of the Indian government. Since the government secures your money, you are taking the lowest financial risk conceivable.

  • No storage hassle 

Physical gold poses storage and security difficulties, and it also needs to be protect from potential theft and transportation issues. On the other hand, SGBs are a type of digital security that can be kept in your Demat account.

  • Additional Interest income

Physical gold is a “dead” investment because it only generates potential capital gains. SGBs, on the other hand, provide capital gains and 2.5% annual interest with no TDS. You might have 20% more if you keep your bonds for 8 years compared to physical gold!

  • Stable Investment

Investing in gold is relatively safe and secure because gold prices are less reactive to market fluctuations.

  • Liquidity/transferability

Sovereign gold bonds can be simply purchase online and transfer to another person. You can trade them in the secondary market because they are listed on the exchange. Physical gold does not work this way.

  • Investing in Sovereign Gold Bonds with SMEST.

Investors buy Sovereign Gold Bonds more effortlessly through SMEST. Invest from the convenience of your home! It’s easy, convenient, and hassle-free, simplifying payment methods. You can even take assistance from the team of experts of SMEST in case of any queries. 

Invest in just 3 simple steps:

  • Choose- Go online on  and select the amount you want to invest.
  • Verification- For identification purposes, complete a quick KYC and link your Demat and bank accounts.
  • Online payment- Make your payments through well-known online payment platforms and purchase your gold bonds today! 

Considering all the benefits and convenience of investment, Sovereign Gold Bonds are truly a blessing. It’s time to invest in yourself or give it as a gift to someone you care for! To know more about high return bonds in India visit 


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