Along with physical gold, people are also like digital gold (Digital Gold). Sovereign Gold Bonds (SGB) are a very good option in digital gold. The new series of Sovereign Gold Bonds has not been issued for investment yet. In such a situation, a lot of craze is being seen about it in the secondary markets. After the increasing interest of the people, Sovereign Gold Bonds are trading at a premium of 5 to 10 percent.

What is a Sovereign Gold Bond

A Sovereign Gold Bond is a government bond. It is issued by the Reserve Bank of India (RBI). It also provides tax benefits on maturity along with coupon rates. This bond is considered a much better option than the rest of the digital gold investments. In such a situation, many people are buying old gold series from secondary markets. Let us tell you that there is no active trading of gold purchased from secondary markets. In such a situation, there is also a possibility of loss in it.

RBI had issued 67 installments of Sovereign Gold Bond from the year 2016 to 2024. However, now it is believed that the government can reduce it by limiting its scope. The reason for this is that it is proving to be expensive for the government.

Where to buy SGB
The Sovereign Gold Bond series may not have been launched in the stock market, but it has been listed in the secondary markets. Apart from this, it is also available for trading in the cash segment of both the stock exchanges (BSE and NSE) of the market. In such a situation, investors can easily buy or sell it using a Demat Account. Let us tell you that one unit of SGB is equal to one gram of gold.

Will it be right to buy a Sovereign Gold Bond?
If you are also thinking of buying SGB with a premium in the secondary markets, then you may have to face challenges in the next 5 to 6 years. Actually, according to market experts, if the price of gold does not increase according to the premium, then investors may have to face losses. Let us tell you that the redemption price of this bond is decided based on the market price. In such a situation, buying this bond from the secondary markets can be quite risky.