SGBs: Buy Gold at a Discount in Secondary Market

• Sovereign Gold Bonds (SGBs) are no longer issued by the government but can be purchased in the secondary market.
• SGBs offer 2.5% annual interest and tax-free gains if held to maturity and redeemed with the RBI.
• Investors can buy SGBs through trading apps like Zerodha, Groww, or Upstox, similar to buying shares.
• Buying SGBs in the secondary market can be significantly cheaper than physical gold, with current prices around Rs. 13,102 per gram.
• Considerations include low liquidity, the premium over gold price, and tax implications if sold on an exchange before maturity.

Why It Matters: This explains how to buy gold below market price via secondary SGBs.