SGB Investors Face Dilemma: Sell or Hold After 200% Gold Gains?
Business
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News18•23-01-2026, 18:30
SGB Investors Face Dilemma: Sell or Hold After 200% Gold Gains?
- •Gold prices hit a record high of Rs 1,57,150 per 10 grams, driven by geopolitical tensions, rupee depreciation, and central bank stockpiling.
- •Sovereign Gold Bonds (SGBs) have delivered over 200% returns for some investors due to the gold rally.
- •Investors face a dilemma: book profits now or hold for long-term returns and tax benefits.
- •Experts suggest selling SGBs before maturity can be prudent to lock in gains and avoid price correction, with tax-exempt capital gains on early redemption via RBI windows.
- •Holding SGBs till maturity offers 2.5% annual interest and full capital gains tax exemption, but selling in the secondary market can capitalize on current premiums.
Why It Matters: SGB investors must weigh immediate profit-taking against long-term tax benefits and interest income amid record gold prices.
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