Glossary
Sovereign Gold Bond: meaning, example and why it matters
A government security, issued by the RBI, whose value is linked to the price of gold and which pays a small fixed interest. New issuance has been irregular, so check the RBI for current availability; existing bonds can trade on exchanges.
Worked example
A bond issued at ₹6,000 per gram with a fixed 2% yearly interest (illustrative) pays ₹120 per gram a year, in addition to the change in the gold price at redemption.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
It combines gold-linked value with a small fixed interest, and it is a government security rather than physical gold.
Related terms
Frequently asked questions
Can I purchase a new Sovereign Gold Bond now?
Issuance has been irregular. Check the RBI and the government for current issues, or the exchange for existing bonds.
Is this page investment advice?
No. Sovereign Gold Bond is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.