Anybody invest in Sovereign gold bonds?

[sri_cc]

Why Govt will pay 12-15% annually?? See in all govt instruments they are paying 7-8% but here in SGB they have to pay 12-15% CAGR annually.
So it's a big loss for govt.

It we see practically SGB is also a Bond only and never ever govt has paid and wants to pay 13-15% on a Bond. And moreover they have to 2.5 yearly interest.

right now gold price has gone up and hence govt is worried but if it had gone down they would've benefited
also 12-15% CAGR seems high for gold, probably for the last 3-5 years it might be that, but long term gold has always been 7-9%
I agree the 2.5% extra interest is coming to bite their ass in the back on top of this current gold run, but sooner or later
consolidation phase might start for gold and during that time, it would be a better choice for govt
also, when they started, I think one of the major reasons was, money should not leave India for buying gold but without buying actual gold ,
so they added 2.5% but it blew up in their faces, but I feel it's just wrong timing

That's why I was saying whoever invested in SGB are real intelligent people!!

And some idiots were crying that physical gold is best and blah, blah, blah... See that's the problem they don't have financial literacy. Nobody is saying here Gold is a bad investment. But you have to smart enough to choose what is the best option in all the better options.

agree on this part, SGB's have been a better instrument compared to ETF's or physical gold

Practically 15% CAGR and 2.5% yearly return that too with SOVEREIGN Guarantee... Nowhere in the world that is given.
So that's why Govt won't launch SGB now onwards.

I'm again not so sure about 15% CAGR across long term for gold
Sovereign guarantee is good
But I feel they might resume issuing SGB's if they feel gold went into consolidation phase

 

[sauravkumar]

I'm again not so sure about 15% CAGR across long term for gold
Sovereign guarantee is good
But I feel they might resume issuing SGB's if they feel gold went into consolidation phase

First of all you should be aware about community guidelines.
It is clearly mentioned you should quote multiple posts and then reply in one post together for all and here you are doing completely opposite i.e. breaking one post into three.

Now atleast Google it before quoting or replying me. And please check the previous replies if possible. So that unnecessary time won't be wasted.

Now coming to your point. First of all why YOU GUYS CAN'T UNDERSTAND I AM TALKING ABOUT SGB NOT GOLD. First learn the difference!!

SGB has given way more returns than what I have mentioned.
Sources:

Sovereign gold bonds premature withdrawal in May can earn 16.5% returns; key points to keep in mind while exiting SGB early

Sovereign gold bonds premature withdrawal: Investors holding SGBs issued earlier can redeem them prematurely in May with potentially attractive returns due to rising gold prices. How much tax will you have to pay if you withdraw prematurely? Should you withdraw your sovereign gold bonds early...

m.economictimes.com

https://www.moneycontrol.com/news/business/personal-finance/sgb-2016-i-issue-delivers-xirr-of-13-6-on-maturity-beats-return-of-gold-funds-12229381.html

And still I haven't considered Annual Interest. If I consider that thing also... It's way more than you can ever imagine.

I don't know about your knowledge but stop unnecessary commenting on other posts also if you are not an expert in this field!!

 

[sri_cc]

First of all you should be aware about community guidelines.
It is clearly mentioned you should quote multiple posts and then reply in one post together for all and here you are doing completely opposite i.e. breaking one post into three.

ok my bad, was not fully aware of this feature, I'll stick to multi-quote in the same post

moved them into a single message

Now coming to your point. First of all why YOU GUYS CAN'T UNDERSTAND I AM TALKING ABOUT SGB NOT GOLD. First learn the difference!!

see SGB's track gold price, only difference is that, it gives 2.5% annual interest extra and if you bought online you'd have gotten a 50rs discount per bond
(I'm not including other things like sovereign guarantee etc since, we'd be only discussing numbers right now)
if there's any other difference please do teach us

SGB has given way more returns than what I have mentioned.
Sources: https://www.google.com/amp/s/m.econ...iting-sgb-early/amp_articleshow/109834668.cms

https://www.moneycontrol.com/news/b...rity-beats-return-of-gold-funds-12229381.html

see these are specific data points in time, the article doesn't mention if the XIRR is including interest payout or not
I was clearly mentioning over long term gold has performed between 7-9 % only, and since SGB's track gold price with 2.5% additional interest on the face value, it can be close to 10% in the end rather than 15%

Has Gold Been a Good Investment Over the Long Term?

Examine the investment performance of gold dating back to 1933, when President Franklin D. Roosevelt required all gold bullion, coins, and notes to be surrendered.

www.investopedia.com

https://www.financialexpress.com/money/gold-price-history-when-gold-was-rs-99-per-10-grams-imagine-the-returns-today-3491706/

now the difference between returns of gold between the articles is due to one being in USD and other in INR
most of the returns we're getting for gold in INDIA is due to dollar appreciation against the rupee

And still I haven't considered Annual Interest. If I consider that thing also... It's way more than you can ever imagine.

on a funny note, I can clearly imagine this, this is just 2.5% extra

I don't know about your but stop unnecessary commenting on other posts also if you are not an expert in this field!!

I don't know if I'm an expert in this field but would defenitely not consider someone an expert who is suggesting IPO's to a newbie investor

S

Post in thread 'Demat account AMC charges'

Sep 8, 2024

Oh that's a relief...thank you so much bro for taking the time. I will try to liquidate and start in coin.

And one suggestion, please apply in Bajaj Housing Finance IPO which is opening tomorrow and pray for allotment.

If you are lucky then you will get the allotment.

• sauravkumar

Also, one suggestion, you don't need to be this angry, every one starts at zero and with learning accumulates knowledge, no need to think one is superior to others.

 

[anisharya16]

Very aptly and beautifully explained!!

Everything you explained logically and by giving example.

I was tired of explaining this to these people!!

A big thank to you!!

Same here. Log samajhte nhi.

 

[pothi]

ok my bad, was not fully aware of this feature, I'll stick to multi-quote in the same post


see SGB's track gold price, only difference is that, it gives 2.5% annual interest extra and if you bought online you'd have gotten a 50rs discount per bond
(I'm not including other things like sovereign guarantee etc since, we'd be only discussing numbers right now)
if there's any other difference please do teach us


see these are specific data points in time, the article doesn't mention if the XIRR is including interest payout or not
I was clearly mentioning over long term gold has performed between 7-9 % only, and since SGB's track gold price with 2.5% additional interest on the face value, it can be close to 10% in the end rather than 15%

Has Gold Been a Good Investment Over the Long Term?

Examine the investment performance of gold dating back to 1933, when President Franklin D. Roosevelt required all gold bullion, coins, and notes to be surrendered.

www.investopedia.com

https://www.financialexpress.com/money/gold-price-history-when-gold-was-rs-99-per-10-grams-imagine-the-returns-today-3491706/

now the difference between returns of gold between the articles is due to one being in USD and other in INR
most of the returns we're getting for gold in INDIA is due to dollar appreciation against the rupee


on a funny note, I can clearly imagine this, this is just 2.5% extra


I don't know if I'm an expert in this field but would defenitely not consider someone an expert who is suggesting IPO's to a newbie investor

S

Post in thread 'Demat account AMC charges'

Sep 8, 2024

Oh that's a relief...thank you so much bro for taking the time. I will try to liquidate and start in coin.

And one suggestion, please apply in Bajaj Housing Finance IPO which is opening tomorrow and pray for allotment.

If you are lucky then you will get the allotment.

• sauravkumar

Also, one suggestion, you don't need to be this angry, every one starts at zero and with learning accumulates knowledge, no need to think one is superior to others.

While I have invested in SGB too, this reply is not to support SGB, but for your quick learning and how you put together everything to show . Well done man.

 

[sauravkumar]

ok my bad, was not fully aware of this feature, I'll stick to multi-quote in the same post


see SGB's track gold price, only difference is that, it gives 2.5% annual interest extra and if you bought online you'd have gotten a 50rs discount per bond
(I'm not including other things like sovereign guarantee etc since, we'd be only discussing numbers right now)
if there's any other difference please do teach us


see these are specific data points in time, the article doesn't mention if the XIRR is including interest payout or not
I was clearly mentioning over long term gold has performed between 7-9 % only, and since SGB's track gold price with 2.5% additional interest on the face value, it can be close to 10% in the end rather than 15%

Has Gold Been a Good Investment Over the Long Term?

Examine the investment performance of gold dating back to 1933, when President Franklin D. Roosevelt required all gold bullion, coins, and notes to be surrendered.

www.investopedia.com

https://www.financialexpress.com/money/gold-price-history-when-gold-was-rs-99-per-10-grams-imagine-the-returns-today-3491706/

now the difference between returns of gold between the articles is due to one being in USD and other in INR
most of the returns we're getting for gold in INDIA is due to dollar appreciation against the rupee


on a funny note, I can clearly imagine this, this is just 2.5% extra


I don't know if I'm an expert in this field but would defenitely not consider someone an expert who is suggesting IPO's to a newbie investor

S

Post in thread 'Demat account AMC charges'

Sep 8, 2024

Oh that's a relief...thank you so much bro for taking the time. I will try to liquidate and start in coin.

And one suggestion, please apply in Bajaj Housing Finance IPO which is opening tomorrow and pray for allotment.

If you are lucky then you will get the allotment.

• sauravkumar

Also, one suggestion, you don't need to be this angry, every one starts at zero and with learning accumulates knowledge, no need to think one is superior to others.

For 2 things now you are annoying me :

1) For GOD SAKE THIS IS THE FORTH TIME I AM SAYING THE SAME THING THAT I AM TALKING ABOUT SGB. LEARN ABD UNDERSTAND ABOUT IT FIRST BEFORE UNNECESSARY COMMENTS!!

And FYI you can only calculate the return of a instrument from the day it was launched. Please learn something now atleast!!.
Understand that the person is talking/debating on SGB. So respond on SGB only. If you have done that... the idiotic questions that you are asking.. you wouldn't have!!
Tell me when SGB was launched in USD currency??
What is the starting date of SGB. How to calculate return here? These all things you have to learn.

See you don't know the basics of Finance and wants to be an expert in it.

2) And in finance and investment 2.5% matters a lot bro!! Don't ever take your even 0.1% returns for granted and say it's nothing!!

Again it's not right for you to comment from other discussions here. I am free to give whatever advice I want to anyone and it's their decision whether they take it or not.
And to me he has experienced... he is in market for last one year.
You are no one to say what a person has to do. I have seen many investors who only invest in IPO only.
The way you are behaving is childish.
Shall I also behave like you and post in all the threads how you are responding. This is not the right way.
And in my opinion he has better knowledge than you in market.

And if you want to play GOLD- Gold please go to your Local Jewellers and eat their brain. Now after this if you still mentioned Gold and quote me frankly speaking I will kill you!!

Just Kidding Bro... Just wanted to say friend please understand SGB is completely different than Gold.