Determining the Price of SGBs

How is the price of SGB determined?

The price of Sovereign Gold Bonds (SGBs) is primarily set by the government of India at the time of issuance. This initial issue price is based on the average closing price of gold of 999 purity for the last three working days of the week preceding the subscription period. However, once the SGBs are listed on the stock exchange, their price can fluctuate due to market forces. Factors influencing the SGB price include:
  • Global and domestic gold prices
  • Prevailing interest rates
  • Inflation rates
  • Overall demand and supply for SGBs in the market
For instance, the starting issue price for the SGBs of Series IV of 2022-23 was ₹5611 per gram of gold. However, the market price may deviate from this depending on the aforementioned factors.

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