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Gold & SGB — A Simple Diversifier
Sovereign Gold Bonds (SGB), ETFs and digital gold — what they are, how to subscribe/buy, liquidity, and taxation basics.
SGBIssue CalendarTaxationETF vs SGB
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Quick Summary
SGB: gold-linked bond with a fixed coupon; typical 8-yr tenor with early exit windows.
Liquidity: ETFs trade freely; SGB secondary liquidity varies by tranche.
Tax: interest taxable; maturity redemption historically CG-exempt for individuals — verify current rules.
Use-case: long-term diversifier, not a trading product.
What to Compare
Costs & Spreads
ETF expense ratios vs SGB buy/sell spreads; brokerage/DP where applicable.
Liquidity
SGB secondary liquidity can be patchy; ETFs are typically liquid.
Income
SGB coupon vs ETF (no coupon); weigh post-tax outcomes.
Exit Windows
SGB premature redemption vs anytime ETF exit.
Starter Picks
Set expectations before buying.
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FAQs
Is SGB better than Gold ETF?
Depends on liquidity needs and horizon. SGB adds a coupon but has specific exit windows; ETFs are liquid with an expense ratio.
Can SGB be converted to physical gold?
No — SGB settles in cash.
Where do I see upcoming tranches?
Check the SGB Issue Calendar.
Educational only. Not investment advice.
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