What is Sovereign Gold Bond and what are the benefits of buying it?
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. Quantity of gold for which investor pays is protected, since he/she receives ongoing market price at time of redemption/ premature redemption. SGB is free from issues like making charges.