Articles - Currency Commodity
Sovereign Gold Bond (SGB) Pros and Cons: Should You Invest?
Sovereign gold bond benefits are numerous. It is simple, it is non-physical and it offers interest over and above gold price appreciation.
One of the popular ways of investing in gold is through sovereign gold bonds. Of course, that is not the only method since you can also do gold investment through physical gold purchases and through gold ETFs They are all a play on the price of gold
Squaring off of positions is a salient feature of the derivatives market where the buy and sell positions are liquidated with an opposite trade i.e., sell and buy positions respectively. However, this feature is a little different in the commodity market from the stock market.
After the merger of FMC with SEBI, one can use the same account for trading in all asset classes namely stocks, commodities and currencies. So, to begin trading in Commodities, one can enable Commodity segment in the existing trading account or a new account can be created with a registered trading member or broker.
As we have seen from the last 2-years market action of gold against inflation, it does not have a correlation and gold prices are in a broad consolidation phase. More than inflation, gold market is impacted by other economic factors such as interest rate, geopolitical tension, and central banks decision on interest rate.