Buy gold bonds at a discount on exchanges, but hold them until maturity

SGBs are better for taking exposure to gold than exchange-traded funds

gold bonds
Representative image

Around a week ago, the domestic gold price hit its all-time high of Rs 34,450 per 10 gm. Though it corrected by around a percentage point on Monday, returns from gold have improved in 2019. In the past month, the domestic gold price was up 4.8 per cent and 6 per cent in the past three months. And with the government offering the sovereign gold bond (SGB) for subscription at Rs 3,196 a gm last month, those who invested in the issue would be sitting on a 5 per cent notional gain as of Monday. But if you missed the rally and the SGB issue, you can still buy the yellow metal at a ...