Gold bonds useful for investors: WGC

Tribune News Service

New Delhi, June 22

The World Gold Council (WGC) has welcomed the draft released by the government on sovereign gold bonds.

World Gold Council’s India managing director Somasundaram PR said any step that increases consumer choices and makes gold a fungible asset class is good.

“Our research confirms the growing interest among Indian consumers for interest-bearing gold-based investment products. Having said that, majority of Indians prefer gold in physical form and even jewellery is recognised for the value of the gold content – so the investment intent is implicit in all that is gold,” he added.

The WGC said sovereign gold bonds which allow savers to easily sell or trade bonds on commodity exchanges and key features such as the ability to use them as collateral for loans and capital gains tax treatment similar to gold could be useful to investors. Gold investment products which integrate gold further into the regulated financial sector are a positive development, it said.