Sovereign Gold Bonds FAQs
Common questions about Sovereign Gold Bonds, answered in plain language.
What are Sovereign Gold Bonds?
Government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. Their value tracks the gold price and they pay 2.5% a year interest on the issue price. Read more on our Sovereign Gold Bonds page.
Are new Sovereign Gold Bonds available?
New tranches have not been issued for some time. Existing bonds can be bought and sold on the stock exchanges, subject to availability. Contact us for the current position.
How long do I have to hold them?
The bonds mature after eight years. Early redemption with the RBI is allowed from the fifth year on interest payment dates, and you can sell on the stock exchange at any time if there is a buyer.
What are the risks?
The value falls if the gold price falls, so you can lose capital. Bonds bought on the exchange may trade above or below the value of the underlying gold, and trading volumes can be low.
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