sgb safe or not, should i invest??
Well, it used to be completely safe when the RBI issued them directly. Back then, I felt confident knowing my investment was backed by the government.
But now, things are a bit more complicated.
Since the RBI is not issuing new SGBs, the only way to buy them is through the secondary market. If the SGB prices are at par with spot gold prices, it might be safe to invest. But right now, I have noticed that SGBs are trading at a premium compared to gold. So, if I were buying today, I would be cautious because it does not really make financial sense.
Another thing I keep in mind is that secondary market trading comes with liquidity and flexibility risks, especially for some of the older SGB series. It is not as easy to sell quickly or get the exact price you want.
Until the RBI resumes new issues, I personally look at other options like gold mutual funds or even digital gold. These give me exposure to gold without the hassle of storing physical gold or the extra risk of buying SGBs at a premium.