InvestorQ : Is there any risk involved in investing in sovereign gold bonds (SGBs)?
Isha Tharwani made post

Is there any risk involved in investing in sovereign gold bonds (SGBs)?

Answer
image
Anusha Savla answered.
3 years ago
Follow

With it being a sovereign instrument, there are close to zero chances of a sovereign gold bond (SGB) defaulting, that is, you not receiving your invested amount.

Other than the default risk, the only other risk that exists for SGBs is that of fall in gold prices. This is because your SGBs are gold denominated and hence, will get impacted due to rise and fall in gold prices.

However, you mustn’t get unduly worried because gold has performed well over decades and is one of the safest investment avenues when there’s global uncertainty.

Thus, if you are planning to invest in SGB, be rest assured that your investment is in good hands.

1 Views