Do sovereign gold bonds bought in secondary market make good investments?

SGBs are not very liquid. Buy only if you believe gold prices will remain strong and if you can hold till maturity; if you're a short-term investor, ETFs work better

Gold has been in the limelight during CY2019 with returns over 20 per cent. Investors are keenly eyeing gold as an investment option in one form or the other, be it in physical or digital gold–gold exchange traded fund (ETF), fund of funds investing in gold ETF or through sovereign gold bonds (SGB).

As physical gold does not give any interest or dividend, fans of ‘regular income’ prefer SGB over bullion and gold ETF. However, SGB issuances are not available round the year. Either you have to wait for a new issue or buy it from the secondary market. If