Why should I buy SGB rather than physical gold? What are the benefits over holding physical gold?
Here are some of the many benefits of investing in Sovereign Gold Bonds (SGBs):
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The quantity of gold bought remains protected as you get the current market price at the time of redemption/premature redemption
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The risks and costs of holding gold in physical form are eliminated
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Additionally, you get periodic interest when you invest in SGBs
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Unlike physical gold, there are no concerns with the purity of the gold as they are held in bonds
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SGBs are held in dematerialized form with the Reserve Bank of India. This eliminates the risk of loss or theft