Final series of Sovereign Gold Bond 2023-24 open now: A look at returns and ways to invest

The issuance of these bonds is scheduled for February 21.

It's crucial to note that SGBs have an eight-year maturity period. It provides investors with a secure and sovereign-backed option.

SGBs distinguish themselves from physical gold as they offer potential price appreciation and generate income through interest payouts.

Investors receive a 2.5% interest rate, making SGBs a compelling choice for those seeking a combination of steady returns and exposure to the gold market.

Experts recommend SGBs for gold-oriented investments or individuals interested in a Systematic Investment Plan (SIP).

The bonds cater to both larger investors, allowing substantial investments up to 4 kgs, and retail investors, who can start with as little as 1 gram.

Nish Bhatt, Founder & CEO of Millwood Kane International, emphasised the security and historical performance of SGBs.

He said, "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 has more than doubled in the last 10 years. The SGB scheme is an ideal investment opportunity for investors willing to hold on to their investments to seek capital appreciation in the long run."

Colin Shah, MD of Kama Jewelry, anticipated significant interest in the current tranche, citing the attractive benefits and returns.

He noted that as the Indian economy navigates challenges, SGBs provide a safe investment option against uncertainties.

Investors can buy gold bonds from commercial banks. They can visit a bank branch or designated post office physically and fill out the form along with units and submit it along with a Cheque or DD to make payment.

Investors can also buy gold bonds from Stock Holding Corporation of India Limited (SHCIL) and recognised stock exchanges.

Online investors can even buy via net banking or through mobile application of the bank.

Additionally, SGBs are available via RBI's retail direct website

Moreover, investors can explore primary issuances in the secondary market beyond the subscription window.