Reopening of physical gold markets hits sovereign gold bonds' demand

August sales were the highest ever in a month since launch

The purchase of sovereign gold bonds (SGBs) since April, driven by lockdown-led demand, has subsided in tandem with the reopening of physical gold markets.

Sales in August (6.35 tonnes) were the highest ever in a month since the launch of SGBs in 2015.

However, sales in the last three months, 6.623 tonnes, have fallen.

An SGB is denominated in gm.

Not only that, sales of bonds in November, or the in Dhanteras and Diwali week, at 1.57 tonnes, were the lowest since April, after the nationwide lockdown was imposed at the end of March.

So, was the interest in gold bonds only because of physical