India, Oct. 13 -- Sovereign Gold Bonds (SGBs) are government-backed securities that let you invest in gold digitally. They offer 2.5% annual interest, tax-free capital gains at maturity, and eliminate the need to store physical gold.

Sovereign gold bonds are government-issued securities that allow investors to own gold in digital form, without having to buy or store the physical metal. These bonds are denominated in grams of gold and are issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

Each bond unit represents one gram of gold and earns a fixed annual interest of 2.5%, in addition to any capital appreciation linked to the market price of gold. The bonds are considered one of the safest and most tax-effici...