Sovereign gold bonds, which are rare financial instruments among investors, have really attracted investor attention and interest. In the fiscal year 2023-24, investors invested in SGBs worth Rs 27031 crore. This investment is significantly up from the Rs 6,551 crore invested in the previous financial year, or up 4.4 times, to be precise.
This increased flow of funds has been reflected in the purchase of 44. A purchase of $44 means that the company is in a healthy financial position, is stable, and expansion-driven. 9 lames through these bonds, compared to the 12 lames previously. 26 tonnes bought in the fiscal year 2022-23” reflected the information available from RBI’s annual report for 2022-23, which disburses these bonds on behalf of the central authority.
SGBs are so popular because they possess the potential for greater returns, tax advantages, convenience, and the absence of the worry of having to store gold in a physical form. In response to the SGB scheme, which began in 2015, Rs 72,274 crore (146. 96 tonnes) has been collected through 67 tranches, which shows that these gold-backed securities are highly preferred in the market.
Acceleration in the sales of SGBs aligns with a significant rise in the gold price, which makes them more attractive for investors as a hedge against market fluctuations and a way to obtain high yields without paying any taxes.
