When you think about investments for Indians, you instantly get the picture of physical gold investment. Gold, in India, is not just invested in for its decorative and auspicious value, but for pure investment, in the form of biscuits, bricks, coins and jewellery. A traditional practice that has proved secure in the long run, Indians believe that selling physical gold at any time in future will let them see a return on their investment. Nonetheless, Indians are gradually warming to investing in sovereign gold bonds or E-gold for many reasons.
- What is a Sovereign Gold Bond?
Before you consider whether to invest in sovereign gold bonds versus physical gold, you should know what sovereign gold bonds are. Sovereign gold bonds are issued by the Reserve Bank of India, and are substitutes for physical gold. They are issued as government securities and offer many advantages.
- Advantages when You Buy Sovereign Gold Bonds
The only disadvantage of buying sovereign gold bonds over physical gold, if that translates to jewellery, is that you can’t wear bonds. For the pure investment, as several people buy gold for this purpose, sovereign gold bonds are better to go with over physical gold anyday, for the following reasons:
If you want to know how to buy sovereign gold bonds, you can approach any bank for an application form. Sovereign gold bonds are also available online through financial corporations like Motilal Oswal, and the process to apply and acquire these is simple.
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