“The Great Failure Like Satania”: Expert flags, SGB, warns 1.13 rupees.

Amid a large discussion about the sovereign golden bonds of India (SGBS), the AK Mandhan, a financial plan and a SEBI registered research analyst, criticized the scheme, describing it as “bribery” like the demonization and its manufacture in India.

With the move to X on Sunday, Mandhan argued that the defective design of SGBS has led to an unsustainable increase in government obligations, which swallowed 930 % in only six years, reaching 1.13 rupees with current gold prices.

“The bad design of SGBS has led to a 930 % increase in the obligations in the government in the past six years only, which, at the price of gold today, stands at 1.13 Krour Lac,” Mandahan wrote. He also warned, “With every traffic mark in the price of gold, this will continue to inflation. And you know who pays government obligations …”

Mandan’s claims reflect a recent report on the printing that SGBS has led to an amazing increase of 930 percent in government obligations in this borrowing by 2023-24. The report said that the obligations have the ability to grow to 1.12 rupees of Cham Rural by 2032, according to market estimates. I blaming the failure in part for the design of the SGB scheme and partly on the actions of the government, such as increasing the duties of gold to 15 percent by July 2022.

What is SGBS?

SGBS was launched in 2015 as an alternative to material gold investment, SGBS allows individuals to invest in gold in a paper form while they get an annual benefit of 2.5 %. This scheme is designed to reduce India’s dependence on imported gold, which attracts the country’s trade balance. However, the government also guarantees the recovery of these bonds at the prevailing market prices, which means that its obligations rise with every increase in gold prices.

The growing burden on government financial affairs
Gold prices have increased dramatically since the insertion of SGBS, crossing $ 64,000 per 10 grams in 2024 from about 26,000 dollars in 2015. This increase led to a huge increase in the cost of salvation to the government. Since SGBS is backed by a sovereign guarantee, taxpayers ultimately bear the burden of these obligations.

Mandhan’s tweet highlights this anxiety, as he drew similarities with the demonization and made it in India, in which many critics argue that they failed to fulfill their promises.

However, while some economists and market analysts argue that SGBS provides a safe investment option and helps to reduce the demand for material gold, others agree that the increasing cost of recovery can pose long -term financial risks.

With the expected gold prices to remain volatile amid global economic uncertainty, the discussion about SGBS will be unlikely to fade any time soon. Currently, as Mandhan warns, “with every gold price sign, this will continue to amplify.”