Sovereign Gold Bonds are issued by the RBI and track the price of gold, and they pay a small fixed interest on top, currently around two and a half percent a year, so they are a government backed way to hold gold without storing metal. For a founder, a modest slice of gold can be a hedge that behaves differently from your startup equity and your stocks. But safe here means low credit risk, not stable value: the price still rises and falls with gold, so this is not a place for money you cannot afford to see dip. SGBs also run for several years with limited early exit, so treat them as a long hold, not a cash buffer. The interest is taxable, while gains on maturity have had favourable treatment that can change, so confirm the current tax rules with a CA before you count on them.
2 resources, 2 India-specific, 2 link-checked.
The government-backed way to hold gold that pays interest and skips storage, if you want a small gold allocation without the physical metal.
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