Invest in Gold from the Comfort of Your Home with Sovereign Gold Bonds

Manoj Prasad

Gold has shined bright even amidst market volatility in 2023. As it continues its bull run, touching new highs of ₹63,630 per 10 grams, the precious metal has delivered nearly 15% returns this year so far. Now is an opportune time for investors looking for safe haven assets to lock into gold prices.

The government has reopened subscriptions for Sovereign Gold Bonds (SGBs), offering an excellent way to invest in paper gold. With digitization, buying paper gold online through your bank is easier than ever.

Why Sovereign Gold Bonds?

SGBs are government securities denominated in grams of gold. When the bonds mature, you receive the prevailing gold price in cash rather than physical gold. Here are some key benefits:

Hedge Against Market Volatility

Gold acts as an effective hedge against inflation and market crashes. While equity markets collapsed in 2022, gold held strong, underlining its countercyclical appeal.

No Storage Hassles

You avoid the trouble and costs of storing physical gold safely. Gold in dematerialized form eliminates security concerns and locker charges.

Attractive Returns

Besides gold price appreciation, SGBs offer an annual interest rate of 2.5% payable semi-annually. Gains are also tax-free if held till maturity.

Secure Instrument

SGBs carry sovereign guarantee, making them one of the safest instruments for parking your money. They pose no default risk that corporate bonds carry.

Step-by-Step Guide for Purchasing SGBs Online

Purchasing sovereign gold bonds through your bank’s internet banking platform or mobile app takes only a few minutes. Follow these steps:

Step 1: Login to Net Banking Account

Log into your net banking account using your credentials. Both mobile and internet banking platforms work.

Step 2: Locate SGB Option

From the e-services menu, select ‘Sovereign Gold Bond’ scheme listed under investment products.

Step 3: First-Time Registration

If investing for the first time, click register and accept RBI’s terms and conditions. Provide demat account details where bonds will be credited.

Step 4: Subscription Order

Existing users can directly click ‘Purchase’. Specify the number of bonds you wish to purchase.

Step 5: Provide Nominee Details

Add nominee information for smooth transmission of bonds in case of death of the holder.

Step 6: Confirm Transaction

Verify all details before entering the OTP received on mobile to complete purchase formalities.

And that’s it! The bank will deduct subscription money from your linked account. SGB units purchased will be credited to your demat within 2 working days.

Ideal Investment Horizon

SGBs have a tenure of 8 years with early exit options after 5, 6, or 7 years. Interest is payable every 6 months.

While you can liquidate bonds early, it is ideal to remain invested for the full tenure to benefit from price appreciation in gold over long periods. Historical data suggests gold prices trend higher over longer windows, delivering inflation-beating returns.

Hence, you can treat SGBs as alternatives to physical gold invested with a long-term outlook, away from interim price volatility.

Additional Perks for Online Investment

Purchasing online entitles you to a ₹50 (per gram) discount over the issue price applicable for over the counter subscriptions through branches.

For online payments using digital modes like internet banking or UPI, you qualify for an additional discount of ₹50 per gram. Digital investments also ensure full safety against coronavirus.

So leverage technology to not just efficiently invest in gold from anywhere but also save on commissions and premiums.


Sovereign Gold Bonds offer the twin benefit of fixed returns and gold price appreciation potential sans storage headaches.

As gold breezes past old peaks, allocate some money to gold by subscribing to SGBs online through a convenient, straightforward e-process directly via your bank account.

Hedge your portfolio against market uncertainties by investing for the long haul and capitalizing on gold’s ability to maintain purchasing power over long periods.

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