Sovereign Gold Bonds (SGBs) are government-backed securities denominated in grams of gold and are considered an alternative to holding physical gold. Apart from capital appreciation linked to gold prices, investors also earn a fixed annual interest on their investments.
According to a statement from the Central Bank, investors also get the option to redeem their SGB investments prematurely after the fifth year from the date of issue of such gold bonds on a date on which interest is payable.
