What are Sovereign Gold Bonds (SGBs)?

Sovereign Gold Bonds (SGBs) are government-backed securities that represent a certain amount of gold, measured in grams. These bonds offer a convenient alternative to holding physical gold. To acquire SGBs, investors need to pay the specified issue price in cash. When the bonds reach maturity, they are redeemed in cash. It’s important to note that these bonds are issued by the Reserve Bank on behalf of the Government of India