For decades, the Indian middle class has viewed gold as the ultimate "Suraksha Kavach" (safety shield). But for a Gen-Z student in 2025, the traditional "Sunar" (jeweler) model is increasingly inaccessible. With 24K gold prices breaching the ₹75,000–₹80,000 mark per 10 grams, the barrier to entry has moved from "difficult" to "near-impossible" on a student budget. This is why Digital Gold investment for students has evolved from a fintech trend into a core financial strategy. Digital Gold vs Physical Gold: Breaking the ₹100 entry barrier. In this deep analysis, we peel back the layers of the digital gold ecosystem. We don't just ask if it's easy; we analyze the trustee structures, the "buy-sell spread" math, and the regulatory gray areas that every young investor must understand. This article is ...
Securing Your Wealth: Understanding Sovereign Gold Bonds (SGBs) Benefits
Sovereign Gold Bonds (SGBs) is a government-backed security which was launched in November 2015 by the Indian government under the gold monetization scheme.
The government issues sovereign gold bonds twice a year at the current price of 24 karat gold to collect money for the capital expenditure required for the development and growth of the nation.
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All About The Returns Of Sovereign Gold Bonds (SGBs)
*The value of the SGBs fluctuates with fluctuation in the world gold price and can be redeemed at that price after the lock-in period.
*The government gives 2.5% p.a interest on the principal amount invested in sub twice a year.
*As per Livemint,
Average returns yielded by SGB over 8 years has been 13.7%p. a comprising the 2.5 interest given by the government.
Advantages Of Sovereign Gold Bonds (SGBs)
1) No design and making charges which is usually in the case of investing in physical gold.
2) No Impurities - Usually the physical gold may have impurities to make it stronger such as other metals.
3) No goods and services tax (GST) and no security transaction tax (STT) in trading.
4) No capital gains tax after 5 years.
5) Can be used as Collateral for loans.
6) Is tradable on stock exchanges.
Limitations Of Sovereign Gold Bonds (SGBs)
1) 5-year lock-in period although is completely redeemed in 8 years.
2) Capital gains tax is applicable if traded before 5 years.
Minimum and maximum investment
The Minimum investment is 1 gram.
The Maximum investment 4 kilogram.
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Ways to Invest In Sovereign Gold Bonds (SGBs)
BONUS TIP!!!
*If the current price of Sovereign Gold Bonds (SGBs) looks higher short-term fixed deposits can be used as a good alternative investment option for less risk-taking individuals and Sovereign Gold Bonds (SGBs) later can be bought through stock exchanges.
* When the government is issuing fresh gold bonds it is visible as an announcement in brokerage apps and on bank websites as well.
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