Sovereign gold bonds (SGBs) can be the most preferred option when it comes to investing in gold. Here is how and where you can buy them.
08-Dec-2022 •Shruti Agarwal
Where can you buy gold bonds? - K N Rao
Gold has been the apple of the eye for Indians for a long time now. Be its store of value, an auspicious thing to buy on festivals or the glitter it adds to Indian weddings, most people can't resist dabbling with the yellow metal at some point or the other in their lives.
However at Value Research, we are wary of this shiny metal.
But if at all you would like to have some exposure to gold in your portfolio, then gold exchange-traded funds (ETFs), gold mutual funds or sovereign gold bonds (SGBs) are some options worth looking at. These allow you to participate in the gains on account of gold prices going up and at the same time, not worry about gold purity, hefty making charges and taxes and the need to sweat over safe storage. Watch this video to understand them in more detail.
But out of all these options, sovereign gold bonds (SGBs) is the most ideal choice.
How and where to buy gold bonds?
SGBs are available both in demat and paper forms and can be bought offline as well as online. Most banks facilitate buying them and one may even use the facility of internet banking for the same. In addition, it is also sold by post offices and the Stock Holding Corporation of India.
Buying an SGB would require filling up the subscription form and providing a copy of your PAN, address proof along with a passport size photograph (if not already available with the bank), and your bank details where you wish to receive the interest payout.
If you wish to buy SGB in the secondary market, you will need a demat account to buy it on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE).
Suggested read: Sovereign gold schemes
Gold burns bright, outshines equity and debt in 2022
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