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Sovereign Gold Bond scheme a good hedge against rupee, rising inflation

The SBG has an eight-year maturity period, with redemption allowed after five years.

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If you’re subscribing to a primary issue, you’re taking a call on the price of gold in eight years, or rather in five years, when the exit is allowed.

Devangshu Datta New Delhi

3 min read Last Updated : Oct 15 2020 | 9:46 AM IST

The Sovereign Gold Bond (SBG) Scheme 2020-21 series has its seventh tranche (SBG 2020-21 Series VII) open and running till Friday. There will be another issue next month. If bought online, this tranche is offered at Rs 5,051/gram with a discounted price of Rs 5,001. The current spot price of gold is Rs 5,055.

The SBG has an eight-year maturity period, with redemption allowed after five years. It offers interest unlike the physical metal and it’s dematerialised, which takes care of storage. It has fair liquidity.

The bonds are traded in the secondary market. However, this is usually at substantial

Topics : Inflation Sovereign gold bonds Gold Bonds Gold Prices

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