Sovereign Gold Bonds in 2025: Complete Guide to the Gold Bond Scheme and Investment Options
Gold has always been India’s favorite investment from weddings to festivals, it’s seen as wealth and security. But buying jewelry or coins comes with issues like theft, storage, and making charges.
That’s why the Sovereign Gold Bond Scheme (SGBs) became popular. Launched by the RBI in 2015, it allowed Indians to invest in gold without holding physical gold while also earning 2.5% annual interest.
But here’s the twist: in the Union Budget 2025, the government announced that no new Sovereign Gold Bonds will be issued.
Does that mean SGBs are over? Not really. If you already hold them, you’re safe. If you’re new, you can still buy RBI Gold Bonds on the secondary market. Let’s break this down.
What Made Sovereign Gold Bonds Popular?
- Government-backed safety : No purity or storage risk.
- Extra income : 2.5% annual interest, paid every six months.
- Tax benefits : No capital gains tax if held till maturity (8 years).
- Flexibility : Tradable on NSE/BSE after the lock-in period.
Example: Someone who bought SGBs at ₹5,000/gram in 2020 is sitting on ~₹7,500–₹8,000/gram in 2025 plus interest. That’s why investors loved them.
Why Was the Sovereign Gold Bond Scheme Stopped in 2025?
- Rising costs for the government : Gold prices shot up 20%+ in 2025, making redemption expensive.
- Goal achieved : The scheme helped reduce gold imports, its main purpose.
- Budget priorities : Focus shifted toward fiscal discipline.
So while no new issues will open, existing bonds remain valid and tradable.
Can You Still Buy Gold Bonds in 2025? Yes Here’s How
Even though fresh issues are discontinued, you can still invest in SGBs via the secondary market:
- Open a demat account (Zerodha, Groww, ICICI Direct, etc.).
- Search for SGB series (example: SGB OCT25 for bonds maturing in Oct 2025).
- Check the price — as of Aug 2025, many trade between ₹7,200–₹7,800 per gram.
- Buy and hold — you’ll continue to earn interest + price appreciation.
Pro Tip: Compare the secondary market price with current gold rates before buying. Sometimes bonds trade at a discount or premium.
What About Existing SGB Holders?
If you already own Sovereign Gold Bonds:
- You’ll keep earning 2.5% interest until maturity.
- At maturity (8 years), you get the prevailing gold price tax-free.
- You can exit early after 5 years, but only on interest payment dates.
In Aug 2025, some redemptions happened at ₹10,070/gram a huge gain for long-term investors.
Alternatives to SGBs in 2025
Since new SGB issues are gone, here are other ways to invest in gold:
- Gold ETFs : Easy to buy/sell like shares, low charges.
- Digital Gold : Start with ₹10 on apps like Paytm or PhonePe (short-term only).
- Gold Mutual Funds : SIP-friendly, managed professionally.
- Jeweler Gold Schemes : Monthly deposits converted into jewelry (less investment-friendly, more for buyers).
FAQs on Sovereign Gold Bonds (2025 Edition)
Q: Can I still buy RBI Gold Bonds in 2025?
Yes, but only through the secondary market. No fresh issues.
Q: What is today’s Sovereign Gold Bond Price?
It depends on the bond series usually ₹7,200–₹7,800/gram (Aug 2025).
Q: Are SGBs safe now that the scheme is closed?
Yes, existing bonds are 100% valid and backed by the government.
Q: What’s better in 2025 SGBs or Gold ETFs?
SGBs are better for long-term + tax benefits, ETFs are better for flexibility.
Final Word: Should You Still Consider Sovereign Gold Bonds?
The Sovereign Gold Bond Scheme may have stopped for new issues, but it remains one of the smartest gold investments ever launched in India. If you already hold them, congratulations you’ve struck gold.
If you’re new, you can still explore SGBs on the secondary market or look at Gold ETFs as a flexible alternative. Either way, gold is still a shining part of a safe, diversified portfolio.
CrunchyFin Tip: Don’t chase hype. Gold is a long-term play. Start small, stay consistent, and focus on financial freedom.
