Sovereign Gold Bond Scheme

In the present scenario, gold is being one of the most desirable type of investment due to its multiple benefits. Gold is never the less very attractive, easy mode for putting in surplus money when it comes to Indian Society. India however does not have the storage of gold reserves to serve the demands of the society and fulfill their investment goals. There are certain limitations associated with the physical investments in the gold from both the ends, first, the government, as it has to incur the cost of imports of the gold from foreign and secondly, as well as the investors who have to take due care of the investments safety. Therefore, the government has realized the need of systematic investment in gold and came out with a golden opportunity for gold investors in form of SOVEREIGN GOLD BOND SCHEME. The scheme is pertaining to zero investments in physical gold, but a liked demat investments in the gold, giving similar returns as of gold and mitigating the risk of loss of investments when it comes to safety. Above all, a saving on the Balance of Payment too. The paper is focused on analysis of gold investment trend in India, the scheme scrutiny, its benefits and challenges, the comparison between the Gold bonds and the ETFs, which will give a clearer picture on the scheme launched by Prime Minister Narendra Modi for betterment of Indian economy while keeping in mind the sentiment and belief of Indian society when it comes to investments in yellow metal. The research paper is strictly pertaining to the doctrinal approach of analysis of facts and figures about the scheme. The reading available online of the various articles, journals, newspapers have been scanned for a guidance to write this paper. Many citation of various economist as well as the business players have been taken into account for successful completion of this paper which can give better insights to the readers.