A study on Sovereign gold bond scheme as an Investment Avenue
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Abstract
Sovereign Gold Bonds Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. The Government of India will be launching the Sovereign Gold Bonds Scheme soon. As investors will get returns that are linked to gold price, the scheme is expected to offer the same benefits as physical gold. They can be used as collateral for loans and can be sold or traded on stock exchanges. The research reveals the interest of the investors in India seeking investment in gold bonds. The gold bond is the type of an investment tool which would be implemented in future while formulating further investment strategies. This project focuses on the comparison of the physical gold with the gold bond scheme. If there is something positive about it that makes people want to purchase gold in droves, then there are going to be some negatives that make you think twice, too. These things are real concerns, though most people agree that the advantages outweigh the negatives and they purchase gold anyway.
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