InvestorQ : How was the response to the latest issue of Sovereign Gold Bonds that was done last week?
vaishnavi mhatre made post

How was the response to the latest issue of Sovereign Gold Bonds that was done last week?

Answer
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vidhya Laxmi answered.
2 months ago


The fifth tranche out of a total six tranches planned for the year of Sovereign Gold Bonds got a very good response of Rs.3387 crore. With global gold prices rising, most investors prefer to look at gold as an investment hedge rather than as an item of consumption.

The argument appears to be why buy gold jewelry when the same gold can be a good hedge against inflation and other asset class volatility. The issue price of Rs.5344/gram was nearly 10% higher than the fourth tranche of the SGB issue, but demand has remained robust.

In stark contrast, the demand for physical gold has slumped drastically in the last few months as has also been brought out by the data put out by the World Gold Council or WGC. This trend towards gold as an investment is not just unique to India.