whats the catch for Sovereign Gold Bonds.

whats the catch for Sovereign Gold Bonds.

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Deal Newbie
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If government goes bankrupt, then will it be better to invest in real gold vs paper bonds like these

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Ngbbs4cfc5ca39efee
Deal Cadet
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Dont worry govt will never go bankrupt, have some faith on them.

Agar govt bankrupt hua to aapka sona bhi koi chhin kar le jayega.

0adb54b33378ab05c450d11f8dd0c7be
Deal Subedar
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That is a scenario you as an Individual should not hedge against / consider. If the govt goes bankrupt you are ****-ed either way.

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Deal Cadet
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Dont invest in gold bonds
Real gold is far more valuable than paper or digital gold
You will be trading your real gold for fake fiat money for petty interest
And in most probability at the end of the tenure when you get cash money in hand you wont end up buying real gold of that
Hence government would have successfully converted your real physical gold into fake fiat money

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Deal Subedar
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karanoshan wrote:

Dont invest in gold bonds
Real gold is far more valuable than paper or digital gold
You will be trading your real gold for fake fiat money for petty interest
And in most probability at the end of the tenure when you get cash money in hand you wont end up buying real gold of that
Hence government would have successfully converted your real physical gold into fake fiat money

No one buy SGB with Gold. They buy with Cash. SGB is just a Treasury bond linked to Gold prices. While ETF has Gold as the underlying, SGB does not even have any Gold underlying.

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Deal Cadet
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panchabhut wrote:

No one buy SGB with Gold. They by with Cash. SGB is just a Treasury bond linked to Gold prices. While ETF has Gold as the underlying, SGB does not even have any Gold underlying.

I thought you were talking about gold deposit scheme

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Deal Cadet
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panchabhut wrote:

No one buy SGB with Gold. They by with Cash. SGB is just a Treasury bond linked to Gold prices. While ETF has Gold as the underlying, SGB does not even have any Gold underlying.

I know etf is said to have gold underlying
However, these days trust no one.
No regulatory body is going to check if they actually have the physical gold that they are showing on paper

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Deal Lieutenant
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karanoshan wrote:

I know etf is said to have gold underlying
However, these days trust no one.
No regulatory body is going to check if they actually have the physical gold that they are showing on paper

Yeah just wait till someone gets greedy and says your gold disappeared stuck_out_tongue

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