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Below is perspective on Sovereign Gold Bonds Tranche 3 By Nish Bhatt, Founder & CEO, Millwood Kane International

“ The price for the third tranche of SGB is fixed at Rs 4889/gm. Investment in Sovereign Gold Bond is picking up pace, as per data the Tranche-1 of SGB saw investment in excess of Rs 2500 crores. The high interest was also due to lower prices of Gold which reflected in the subscription price for the SGB.

The advice and aim of the government, that investment should move from physical to paper gold is picking up pace. The subscription figures for FY21 were impressive and FY22 is likely to mirror it. Investment in SGB is a superior alternative to physical gold. Investment in SGB saves the cost of buying, storing, and selling the physical gold bar or coins.

Gold prices show promise of upside from current levels in the near future, but heavy flows in equities may affect the rally for the yellow metal. As we move forward, the economic data, monetary policy, and stance by RBI & US Fed, any further stimulus package from India, the US, and other advanced nations will guide the gold prices along with the concerns related to the virus.”

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