SGBs, are government-run bonds denominated in multiples of one gram of gold, issued by the Reserve Bank of India. These bonds are part of the central government’s market-borrowing program wherein each bond represents the value equivalent to one gram of gold. SGB allows you to invest in gold without the need to buy jewellery, gold coins or bars. Buying SGB means you are buying gold in paper or electronic (demat) form, thus getting rid of storage costs and fear of theft.