Government faces losses on sovereign gold bonds as prices soar

The government has incurred a capital loss of Rs 93,284 crore on Sovereign Gold Bonds due to the soaring price of gold. Launched to curb physical gold imports, these bonds have yielded significant returns for investors, with some seeing over 300% gains, while the government faces losses. Despite record gold prices, consumer demand for jewelry has declined, though financial investments in gold ETFs and bank lending have surged.