Is The Government Showing SGBs The Exit Door? What Will Happen To Your Investments?

Sovereign Gold Bonds (SGBs) were introduced in 2015 to address the growing current account deficit and reduce gold imports. The scheme became popular as it allowed people to buy digital gold with a 2.5% fixed interest, rather than purchasing physical gold. However, this strategy was based on the assumption that gold prices would stay flat or rise slowly. This assumption hasn't held up—gold prices remained stagnant from 2012 to 2018 but surged post-COVID, jumping from ₹35,000 in 2019 to ₹71,000. This sharp increase has significantly raised the government's liability. Sources told BTTV that the Government of India might discontinue SGBs, labeling them as 'expensive and complex' instruments. Is the government preparing to phase out SGBs? What does this mean for your investments? Watch this special coverage to find out.