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Sovereign Gold Bonds: Should Existing Investors Hold Until Maturity Or Sell Early?
NDTV Profit 1 hr ago·5 Nov 2026, 12:30 am
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They offer a fixed interest rate and the advantage of capital appreciation linked to the gold price, all while eliminating issues like making charges and storage costs. For existing investors, the decision to hold or sell depends on your financial goals and market outlook.
Selling early can provide liquidity, especially if you anticipate a short-term rise in gold prices or need funds for other investments. However, holding until maturity locks in the guaranteed interest rate and avoids short-term capital gains tax, which is applied if sold before the maturity date. Investors should weigh their need for cash against the tax benefits of holding the bond.
What to watch next includes the Reserve Bank of India's gold price announcements and the prevailing market gold rates. Keep an eye on your personal tax slab and liquidity requirements. The choice ultimately hinges on whether you prefer immediate returns or the tax-efficient, long-term benefits of holding the bond.
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