Can I convert the sovereign gold bonds to physical gold?

No, you cannot convert sovereign gold bonds to physical gold. The main purpose of SGB is to go for a long term investment. However, SGBs are listed on the exchange and can be traded if available in demat format, converting SGB to physical gold is not possible. SGB is always available in digital or paper format only.

The SGBs are issued for 8 years, but you can encash/redeem after 5th year from the date of issue on coupon payment dates.