Sovereign Gold Bond are alternative investment avenue for gold launched by Government of India. Mostly it can be used for investment and not for consumption.
As per government of India, the price of SGB should be same as price of gold. However due to liquidity issues in secondary market, it is not in sync with actual price.
While this bond is maturing, the payout will be based on actual gold price. Also this bond provides 2.5% interest paid half yearly.
It is better than physical gold because jewelers charge making charges, gst etc which will increase the cost of your purchase minimum 20% than actual worth in the view of investment.
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