# The first SGB issued in Nov 2015 has given 128% return in 8 years. Tax-Free

**URL:** https://tradingqna.com/t/the-first-sgb-issued-in-nov-2015-has-given-128-return-in-8-years-tax-free/156999
**Category:** Bonds
**Created:** [December 5, 2023, 5:07pm UTC](https://tradingqna.com/t/the-first-sgb-issued-in-nov-2015-has-given-128-return-in-8-years-tax-free/156999 "2023-12-05T17:07:09Z")
**Posts on this page:** 1
**Showing post:** 10

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### Author: ![cvs](https://tradingqna.com/user_avatar/tradingqna.com/cvs/32/92503_2.png) [@cvs](https://tradingqna.com/u/cvs)
#### Post date: [January 1, 2024, 12:57pm UTC](https://tradingqna.com/t/the-first-sgb-issued-in-nov-2015-has-given-128-return-in-8-years-tax-free/156999/10 "2024-01-01T12:57:44Z")

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SGB is not backed by actual gold.  
It is backed by a sovereign guarantee (simialr to GSECs) to pay back upon redemption, the value of gold in INR.

However, unlike GSECs,  
the value of SGBs (in the secondary market, and upon redemption)  
depends on the value of the gold in the market.

This old topic-thread has few more details and discussion around SGBs

> [@What's the best option to invest in gold?](https://tradingqna.com/t/whats-the-best-option-to-invest-in-gold/93314):
>
> Indians love their gold. According to a [World Gold Council](https://www.gold.org/goldhub/research/india-gold-market) estimate Indians held between 23,000 to 24,000 tons of gold, a majority of it with Indian households. Indians have an emotional attachment with the yellow metal, it’s a significant part of everything from weddings to festivals. For most Indians, gold along with real estate have been the most popular investment options with jewellery being the most common option. Off late other options like Gold ETFs, Digital gold through various online …

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