How should you invest in gold and when can you sell it back to the issuer?

Sovereign gold bonds (SGBs) are not very liquid

gold
FILE PHOTO: A salesman arranges gold ornaments, on a display board, inside a jewellery showroom during Akshaya Tritiya, a major gold buying festival, in Kochi, India | Photo: Reuters
Business Standard
Last Updated : Apr 12 2018 | 1:17 AM IST
How should you invest in gold? 

 Sovereign gold bonds (SGBs) are not very liquid. You can sell them back to the issuer after five years. Gold ETFs have better liquidity. On physical gold, you have to pay 3 per cent GST. Buy according to need: SGB for long term, ETF if you need liquidity, and bars if you need to accumulate gold for daughter's marriage.

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