InvestorQ : Have the gold bond schemes (Sovereign Gold Bonds) been successful in India?
Angel dcosta made post

Have the gold bond schemes (Sovereign Gold Bonds) been successful in India?

Answer
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Anamika Sodhani answered.
1 year ago


There have been many tranches but only tranches when gold has been very close to lows have been successful. AT higher prices the investors are not too willing to buy into the scheme. The Gold Bond Scheme did not have any of the sentimental baggage that the GMS carried. Under the Gold Bond Scheme (GBS), individuals could buy and hold gold in demat format. It is a lot like swapping your physical share certificates for the comfort of a demat account. The problem is that a lot of the demand for gold comes around the Diwali, Akshay Triteya and Dhanteras time. During these periods it is considered auspicious to buy gold in physical form. That demand cannot easily be translated into demat demand. People continue to buy physical gold on these occasions. Secondly, the pricing of the scheme was unattractive. Charging a 4-5% premium over the market price was a disincentive to begin with. Not surprisingly, just about Rs.150 crore was estimated to have been collected through the GBS while the actual potential was much larger.