Sovereign Gold Bond vs Physical Gold
Compare SGB against physical or digital gold: the 2.5% coupon, the tax-free maturity redemption, and the making charges and GST you never get back.
Quick Summary: Sovereign Gold Bond vs Physical Gold
A Sovereign Gold Bond pays a 2.5% annual coupon on the ISSUE price and its capital gain is fully exempt if redeemed at maturity in year 8. Physical gold pays no coupon, carries making charges plus 3% GST that are never recovered, and is always taxed on the gain at 12.5%. Exiting an SGB before maturity forfeits the exemption, which is usually the single biggest swing in the comparison.
How to use the Sovereign Gold Bond vs Physical Gold
- 1
Enter grams and price
Input how much gold you are buying and today's price per gram.
- 2
Set your growth assumption
Choose an expected annual appreciation for gold.
- 3
Pick a holding period
Eight years is SGB maturity; anything earlier loses the tax exemption.
- 4
Add making charges
Enter the jeweller's making charges to see the real cost of the physical route.
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Regulatory Disclaimer
Last verified May 2026
Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.
Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."
Consult a SEBI-registered IA or CA for personalised advice.
9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.