Can somebody explain how SGB works?

[vvn2023]

I read the details about the SGB in the sites of govt and RBI lot of times, but I am unable to understand exactly how they work and what is the best that we can do with them?

They said we can exit from those bonds after 5 years but I bought it and sold it within a month.

Its really confusing.

Whats the best thing to do with those bonds.

Why am I able to sell those things?

[nithin]

@vvn2023

Whats the best thing to do with those bonds.

Why am I able to sell those things?

Explained here

What are sovereign gold bonds?

In simple words, government sovereign gold bond scheme is where instead of having  physical gold sitting idle in your house, you can invest in gold bonds.  These gold bonds are in demat form, and unlike physical gold gives you an interest of 2.75% annually additional to whatever appreciation happens on the underlying gold value. This interest payment is half yearly on 30th May and 30th Nov.  What happens if gold value drops?  If it drops, your value of gold bond also drops. It is the same way…