How sovereign gold bonds hold up against gold ETFs and funds
If you have an eight-year horizon, SGBs are the best choice given the interest income and LTCG tax
SGB issuances happen according to the RBI schedule. There may not be an issue at the time of reinvestment
The investor interest in gold shows no signs of ebbing with the news on global and domestic economic front and geo-political tensions continuing to be negative. These are the conditions when gold as an asset class thrives as there is a flight to safety. Of the many options available to investors to buy gold, including holding it in physical form and digital form, sovereign gold bonds (SGBs) and gold ETFs and funds seem to score on quality, ease of holding the investment and safety. Let’s take a look at them.