"The sovereign gold bond offers choices to investors to invest (in “paper gold”). You get a certain yield from it as well. I don't see why that would be a negative for the gold market as a whole. I think it's encouraging people to see gold's value as an investment commodity and a stabilizer to their household or institutional income. So no, I don't see it as a threat (to the physical gold trade). I would be very surprised if it grew to such an extent to be a threat," says David Tait.