What are Gold Bonds ?
A sovereign Gold bond is a denomination of 1 gm of gold in form of bonds. We can get multiples of 1 gm. Buying gold bonds is basically buying gold in form of bonds holding the value of actual gold without buying actual physical gold . They are substitutes for holding physical gold. The bonds are issued by RBI on behalf of Government . The minimum investment is 1 gm whereas maximum of 4 kg can be bought per investor per financial year .
If you are looking for a long term investment with good returns then Gold bonds are a good option as they generally have a lock-in period of 7+ years