SGBs: How to Buy on Secondary Market, Tax & ETF Comparison

• Sovereign Gold Bonds (SGBs) were discontinued by the government in February 2024 but can still be purchased from the secondary market.
• Investors can buy SGBs via trading apps like Zerodha or Groww, similar to buying shares, by searching for "SGB" and checking series details.
• SGBs offer a 2.5% annual interest and tax-free capital gains if held until maturity, even when bought from the secondary market.
• SGBs are suitable for long-term investors seeking fixed interest and tax benefits, while Gold ETFs are better for short-to-mid-term exposure and liquidity.
• Capital gains on SGBs are tax-exempt only if held to maturity and redeemed with the RBI; selling on an exchange incurs normal capital gains tax.

Why It Matters: Investors can still buy SGBs in the secondary market, but tax rules differ.