The prize bonds are not only available at State Bank of Pakistan, National Saving Centers and designated branches of commercial banks, but you can also get them in secondary market through agents and brokers.
What is Secondary Market?
There is a complete market that is working on the dealings of prize bond in the main cities of Pakistan. Various dealers and brokers maintain stocks of prize bonds. They sell it on a profit rate to earn money. Although it is costlier to buy prize bonds from secondary markets as compared to primary market, there are many different reasons why people prefer them.
Reasons Why Some People Prefer to Buy at Secondary Markets::
One of the basic reasons behind getting prize bonds from secondary markets is availability. When prize bonds are not available at National Saving Center and anywhere else, they are obtainable in secondary markets. Even during shut period, when it is impossible to find prize bonds anywhere else, the brokers and dealers sell them.
Mistrust in Government
People find it more difficult to trust the government as compared to the dealers they personally know. The agents are usually people the trust so they know that their money will be safe with them. They also believe that as the draw falls under the control of the government they might hold onto bonds and get the winnings or let you sell bonds without telling you about the prize on it. Secondary market does not have any influence on the draw and is perceived to be a neutral body.
It is usually easier and more convenient to buy bonds from secondary markets as the brokers/agents maintain long-term relationships with the buyers.
Agents also provide other services than just selling bonds. The additional services include pick and drop of bonds, providing locker to keep them safe etc. Due to these added values, big investors like to go through the agents versus directly with the government.
Flexibility of Choice
Many people believe that some numbers are especially lucky for them. Through agents and dealers in secondary market, they can get numbers of their choice and preference. This is not possible when buying prize bonds through government.
Due to the above-mentioned advantages and benefits, the buyers prefer to buy prize bonds from secondary market even if they are more expensive. The bonds available in secondary markets have usually already passed the two months duration. The prize bonds buyers do not want to wait for two months before being eligible for a prize. The closer the date of draw arrives, the more the premium on these prize bonds increase.