Is sovereign gold bond backed by physical gold?

The issue price and redemption price for the sovereign gold bond in the average of the closing price of gold of 999 purity of the previous three business days. That way we can say that a sovereign gold bond is backed by physical gold. But if you wish to convert your sovereign gold bond to physical gold at the time of redemption, the answer is no. You cannot get physical gold in place of a sovereign gold bond from RBI.