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Understanding the Pros and Cons: Comparing SGB, Gold ETF, and Physical Gold

Understanding the Pros and Cons: Comparing SGB, Gold ETF, and Physical Gold
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MCX Gold futures get cheaper than SGBs Where should you invest?

Investors are advised to take advantage of the SGB Scheme 2023-24 subscription window, despite a fall in gold prices on MCX Gold Futures, according to analysts. The bonds are intended for long-term investment and the current dip in the price is short-term according to Prithviraj Kothari, CEO of RiddiSiddhi Bullions. The nominal value of the bond depends on the India Bullion and Jewellers Association s average closing price for the last three working days prior to subscription, and at present, gold is in a positive long-term uptrend. Experts suggest that gold will hit between INR65,000 to INR68,000 ($1,009 - $1,053) per 10 grams within the next three to five years.

Gold Rate Today: Gold prices in India fall further amid dollar strength Check price of yellow metal in Delhi, Ahmedabad, and other Indian cities

Gold and silver futures on the MCX settled in the red on Monday and gold is expected to be range-bound with a bearish tilt due to a stronger dollar index. Market participants expect Federal Reserve s Chair Powell to reveal his take on the monetary policy path, which has left investors sceptical of the Fed s intentions to hike rates twice further this year. Moreover, commodity experts predict gold on the MCX to decline by Rs 1,107 per 10 grams in June, though it has gained 7.58% on a year-to-date basis, while silver futures have gained almost Rs 330 in June and 4.44% on a year-to-date basis.

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