SGB (Sovereign Gold Bond)

• Definition: A government-issued bond denominated in grams of gold, which serves as an alternative to holding physical gold. Investors receive a fixed interest rate, and the bonds are redeemable in cash at the prevailing market price of gold upon maturity. Sovereign Gold Bonds aim to reduce the demand for physical gold and offer a secure, cost-effective way to invest in gold.
• Alternate Term: Gold Bond, Government Gold Bond