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Amidst a stock market breakout, Indian investors displayed strong interest in sovereign gold bonds (SGBs), purchasing 7.77 tonnes valued at ₹4,604 crore in the first series of the fiscal year.
This reflects the growing preference for gold as a hedge against inflation and a safe-haven asset during global uncertainties. The SGB scheme, managed by the RBI for the government, has seen an average subscription of 1.72 tonnes across 64 series since its introduction in 2015.
The recent purchases at ₹5,926 per gramme marked the highest issue price, indicating a 10% increase from the previous series. Gold’s reputation as the best-performing asset last year, coupled with geopolitical tensions, contributes to its market-beating returns.
In contrast, the Nifty generated only a 6% return in the year through June. The record SGB purchase suggests a growing awareness of gold’s value as a prudent investment during uncertain economic conditions.