Sovereign gold bonds (SGBs): 5 things to know

1.SGBs are government securities denominated in grams of gold.
2.Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
3.The bonds are held in the books of the RBI or in demat form.
4.Investors are assured of the market value of gold at the time of maturity and periodical interest.
5.The SGBs are a substitute for physical gold as they eliminate the risk and cost of storage of physical gold.