Shweta Agnihotri was furious with her bank manager in August last year because he failed to submit her application for sovereign gold bonds (SGB) in time and she missed the issue. In five out of seven cases, the ETFs have fared better.Observers point out that SGB trading volumes are not very high in the secondary market. “If you want to buy 10-20 bonds, you can get lower prices in the secondary market. But savvy investors could have purchased SGBs of earlier tranches at a lower price from the secondary market. “Though earlier tranches of SGBs are trading at lower prices in the secondary market (by 5-6%), most investors prefer to buy directly from the issuer,” says Deepak Jasani, Head Retail Research at HDFC Securities.

Source: Economic Times May 08, 2017 01:00 UTC