Is your investment in Sovereign Gold Bonds safe?

Since SGB launch, gold prices have increased by more than 250% to Rs 9,300 per 1 gram. At the current price, if all the outstanding bonds are redeemed today, the government will have to pay more than Rs 1.2 lakh crore.
The surge in gold prices in the last few years has sparked a general concern among investors — will the government be able to repay the increasing liability on sovereign gold bonds on time? The reason for this concern is that as the price of gold is rising, the total liability of the government is also increasing in the same proportion.

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