Why is there a price difference between the different traded SGBs and spot Gold?

[Meher_Smaran]

Can check these threads for discussion on this topic -

SGB pricing in Secondary market

The LTP for SGBFEB32IV is currently trading around 7912/gram but the current market price of GOLD is ~6894. So why is it trading at such a high premium? Also given that it was issued at a face value of 6263 i.e. I am getting Interest on only 6263 instead of CMP, so the SG bond should trade lower than the CMP ( ignoring any accrued interest for the last 6 months)? In some places, I found that to find the fair value of SGB we need to ADD “All the future interest payments in present value”. Does…

Sovereign Gold Bonds are trading 7% higher than actual gold prices. Why?

Has anyone noticed how SGBs which have 5+ years maturity left are trading at a 7-8% premium to actual gold prices in last few days?? Can anyone help me understand this phenomenon Current SGBs are trading upwards of 7700 per gram when their benchmark cost is more close to 7250…

SGB price variation - clarification needed

It is not the price of gold. What you are seeing is the last traded price of that SGB in the secondary market. This depends on the supply demand of (different) SGBs on secondary market - irrespective of the underlying price - you can actually take advantage of this. Price of SGB is equal to price of Gold only at the time of issue and at the time of redemption. Redemption is different from selling it in secondary market. Redemption of SGB can happen only after 5 years of issue, the process of wh…