Precious Metals

The RBI has announced a premature redemption window for several series of SGBs as gold has scaled a new high.

Against the backdrop of the looming uncertainty, gold has turned bold right since the beginning of CY2025, with smart investors turning to it. But…

Given that gold prices are rising, SGBs are proving financially burdensome for the government.

Gold has gained nearly +32% in USD term and +26% in INR term so far. But the future trajectory for gold would depend on…

Since Dhanteras 2023, gold has clocked an absolute return of 29.9% in INR terms and on a year-to-date basis in the calendar 2024, 23.9% as of October 24, 2024. Currently, SGBs are trading at a premium in the secondary market.

Since Dusshera 2023, gold has exhibited its sheen clocking a stunning 23.5% absolute return (as of October 9, 2024) and on a year-to-date basis in the calendar 2024, 18.5% in INR terms.

Premature redemption of the SGBs issued between May 2017 and March 2020, depending on the series or tranches, will be carried out in phases.

The RBI -- which is the issuing authority for SGBs on behalf of the RBI and announces the issuances of these bonds in four tranches in the financial year -- has made no announcement so far on the issuance of the SGB 2024-25.

Gold has had a dream run taking the price per 10 grams of gold to a historical high of over Rs 74,000 in the recent past. But change in customs duty on gold resulted in a price adjustment.

Gold is near an all-time high. Several factors are working in favour of the precious yellow metal, but is it worthwhile investing now?