Latest tranche of SGBs offers good entry price to long-term investors

Avoid them if you might require liquidity in the near term as you may have to sell them at a discount on the exchanges

A fresh tranche of the Reserve Bank of India’s (RBI) Sovereign Gold Bonds (SGB) Scheme 2021-22 is now open for subscription and closes on October 29. The price is Rs 4,765 per gram of gold. It comes with a Rs 50 per gram discount on the nominal value if bought online. And although the price of gold is below the peak level of August 2020, demand for the precious metal is rising due to pre-Diwali shopping. Should you also take the plunge?