Risk aversion of investors may ensure that gold prices are pushed upwards
Rising gold prices are expected to elicit a strong response from investors
A 5-10 per cent allocation to gold in the overall portfolio is what most financial planners advise
The SGB can be a good way to invest in gold, provided you have the ability to hold on till the maturity
Traded volumes are low and the price at which they trade are typically at a discount to the prevailing price of gold
For investors in India, gold faces its own set of local headwinds. Increased import costs, government crackdown on unaccounted money, restrained inflation, significant gains in Indian equities this year and continued elevated ‘real’ returns on local bonds are wooing away the traditional gold-buyers.
Leading stock exchange BSE has begun conducting mock bidding session for the sixth tranche of Sovereign Gold Bonds (SGB) scheme, which is expected to be issued later this month by the government.
To facilitate orderly trading in sovereign gold bonds, top stock exchange NSE has introduced online bid collection facility for such issuances.
"First tranche of Sovereign Gold Bonds 2015-16 receives good response. Total subscription denominated in units of gold was 9,15,953 grams amounting to Rs 246 crore," RBI said.