An Analysis of the Millennial Generation's Understanding of the Sovereign Gold Bond, A Key Long-Term Gold Instrument for the Indian Economy

Abstract

India is the world’s second largestgold consumer (≈800 tons), yet the country’s inability to produce enough gold has resulted in a hefty gold import bill. With the rise in Imports, India began to experience Current Account Deficit. AfterSeveral failures,GoI launched two Innovative Scheme: TheGold Monetization Scheme and the Sovereign Gold Bond. RBI issues Sovereign Gold Bonds through various authorized intermediaries at gold price. This Bond has immense future growth and it’s a win-win situation for both investors and the Indian Economy. Thepresent study examines the Compounded Annual Growth Rate (CAGR) of five gold investment avenues, namely Physical Gold (Bullion, Jewelry), Gold ETFs, Digital Gold and Sovereign Gold Bond, to identify high-yielding investments under different gold schemes.It also examines the Millennial Generations’understanding of Sovereign Gold Bondsparticularly in the state of Odisha. The findings of this research will be beneficial to all stakeholders those who are contemplating gold as hedging asset/profitable investment. Keyword: Gold, Sovereign Gold Bond, CAGR, Odisha State, Indian Economy