The SGB is a superior alternative to physically holding gold. Since the investor receives the current market price at the time of redemption/premature redemption, hence the amount of gold paid for by the investor is protected. Storage risks and costs are eliminated. Investors are guaranteed the market value of gold at maturity as well as periodic interest. In the case of gold in jewelry form, SGB is free of issues such as making charges and purity. The bonds are held in the RBI's books or in Demat form, removing the risk of scrip loss, etc.