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Gold At Record High Puts SGB Investors In A Dilemma: Sell Or Hold After 200% Gains?
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Gold rises to Rs 1,57,150 per 10g as investors seek safety. SGB holders weigh selling for profit or holding for interest and tax benefits.
Gold at Peak Levels: Is It Time to Cash Out of SGBs?
Gold prices have surged to a record high as investors flock to safe-haven assets amid escalating geopolitical tensions, the Indian rupee’s slide to a record low, and aggressive gold stockpiling by central banks.
In the domestic market, gold prices touched a fresh all-time high of Rs 1,57,150 per 10 grams.
Riding on the sharp rally in gold, Sovereign Gold Bonds (SGBs)—the government-backed investment scheme—have delivered exceptional returns to existing investors, with some tranches generating gains of over 200%.
With gold prices at elevated levels, SGB holders now face a key dilemma: should they book profits by selling in the secondary market or hold the bonds until pre-mature redemption or maturity to benefit from long-term returns and tax advantages? Market experts believe the decision lies on the objective of the holder.
Aakanksha Shukla, AVP–Wealth Management at Master Capital Services Ltd, believes selling SGBs before maturity can be a prudent portfolio move in the current environment.
“Investors sitting on substantial appreciation may prefer to lock in gains rather than risk a price correction, especially when gold prices have already exceeded long-term return expectations,” she said.
Shukla added that early redemption through RBI windows remains tax-efficient, as capital gains are exempt, and the proceeds can be redeployed into undervalued assets or diversified across equity and debt.
Echoing a balanced view, Thomas Stephen, Head–Preferred at Anand Rathi Share and Stock Brokers, said the decision largely depends on individual investment objectives. Selling at a premium can deliver attractive returns, particularly for bonds that have crossed the five-year lock-in period and are eligible for premature redemption or active trading on exchanges.
However, he cautioned that holding SGBs till maturity allows investors to continue earning the fixed 2.5% annual interest, along with any further appreciation in gold prices, while enjoying full capital gains tax exemption at maturity.
“Selling early may work for short-term profit-taking in a strong gold market, but holding till maturity can enhance overall returns through interest income and tax benefits if gold prices remain firm or rise further,” Stephen said.
Stephen further noted that many SGB tranches are currently trading at a premium in the secondary market due to record gold prices and strong retail demand, which has pushed prices above their underlying gold value. “Selling in the secondary market allows investors to lock in these premiums and realise profits now, especially for series that have already seen sharp appreciation over their issue price,” he added.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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January 23, 2026, 18:30 IST
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NEW DELHI: The West Asia conflict is pushing govt to look at a faster transition towards renewable energy, including the possibility of increasing ethanol blending in petrol from 20-25%, although in a calibrated manner. This will come along with increased refining capacity within the country, so that there is a buffer in the system and greater domestic resilience, those familiar with the discussions said, pointing out that sustaining refineries at 100% capacity is not sustainable.While Barmer refinery has begun operations, expansion at Numaligarh is underway and work on integrated refineries on the west coast is also under focus. Apart from a mega refinery in Maharashtra, a new facility in Gujarat is also planned.Officials said rising use of renewables, biofuels and hydrogen in the energy mix was no longer just an environmental issue, but a strategic necessity in a situation like the present one, where the military conflict in West Asia has disrupted global energy supplies, triggering a supply crisis and a surge in oil and gas prices.According to officials, 20% ethanol blending has helped India save 4.5 crore barrels of crude annually and reduce foreign exchange outflow by around ₹1.5 lakh crore so far. Given the concerns over fuel efficiency and impact on vehicles, govt is expected to take a gradual approach that addresses the anxiety on ethanol blending. The third pillar on energy is expanding the strategic petroleum reserves.
Millions of car finance payouts are in jeopardy after the UK’s financial watchdog indicated its compensation scheme faces significant delays, changes, or even collapse.
This uncertainty stems from four legal challenges against the Financial Conduct Authority (FCA).
The FCA has advised motor finance firms to prepare for the possibility that its redress scheme, which could see an average payout of £829, may not proceed.
The regulator stated that while a hearing date is unclear, these cases are unlikely to be heard before October.
In the meantime, it is in discussions about the “possibility of suspending some elements” of its compensation scheme, while still urging lenders to prepare for payouts.
But the regulator said it was also considering its options should parts of the scheme be quashed by the courts, including proceeding with a revised version or asking lenders to plan for a scenario where “there would be no scheme”.
This could mean lenders need to be ready to respond to complaints from car finance customers individually, rather than under the rules of an industry-wide programme set by the FCA.
“Many people will be frustrated that the legal action will delay payouts due to begin this year,” the FCA said.
“We remain committed to ensuring consumers receive any compensation owed as promptly as possible.”
The FCA set out the final details of its compensation scheme in March, which it estimated could cost the industry about £9.1 billion in total.
It had been expecting millions of claims to be paid out this year and the vast majority settled by the end of 2027.
The financial services arms of carmakers Volkswagen and Mercedes-Benz and the car finance arm of French bank Credit Agricole, as well as Consumer Voice, a group representing consumers, are asking the courts to quash the scheme, arguing the rules are unlawful.
“Between the four separate legal challenges, it is claimed in effect that the FCA’s approach to establishing the schemes has been both unduly favourable to consumers and unduly favourable to lenders,” the watchdog said.
At least one claim alleges that the FCA has breached the rights of lenders under the 1998 Human Rights Act, according to the watchdog.
Despite the uncertainty of the legal cases, the watchdog is still advising consumers to complain directly to their lender if they think they might be owed compensation, which they can do for free using a template letter on its website.
The federal government has increased petrol and diesel prices by nearly Rs15 per litre each for the next week.
In a notification issued on Friday, the Petroleum Division said new fuel rates will come into effect from May 9.
The price of petrol has jumped from Rs399.86 to Rs414.78, while the HSD price increased from Rs399.58 to Rs414.58 per litre.
This marks the third consecutive increase in petrol and diesel prices after cumulative hikes of Rs33.28 on petrol and Rs46.16 on diesel over the previous two weeks.
The government has been reviewing petroleum prices every Friday night amid global oil market volatility linked to the US-Iran conflict.
Global oil prices were up more than 1% on Friday after renewed fighting broke out between the US and Iran, threatening a shaky ceasefire and dashing hopes for progress on reopening the Strait of Hormuz, a key oil and gas transit route.
Brent crude futures were up $1.41, or 1.41%, at $101.47 a barrel as of 0123 GMT. West Texas Intermediate (WTI) US crude futures rose by $1.12, or 1.18%, to $95.93 a barrel. At the market open prices had risen by more than 3%.
Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle-class households, who rely on petrol for daily travel.
On the other hand, a significant portion of the transport sector relies on high-speed diesel.
Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
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