'Scuse my ignorance but can anyone tell me if, when I buy Gilts, I'm obliged to hold them for the duration of the term..ie until maturity...or can I realise their value at any time and, if so, am I penalised for this?

Many thanks
d

there is an active market - so you should be able to sell at the market price anytime, with dealing charges.

Thanks.

It's key to remember that gilts only have their promised value at maturity. They cannot be 'exercised' early.

However, you can sell them to someone else at the market price for the cost of market spread and broker's commission. The market is very liquid, so it is there are always plenty of buyers. However, the market price may vary up and down by up to several % depending upon supply and demand for gilts.

Market price and supply and demand vary depending on a variety of factors - desire of 'safe' investments (gilts go up as shares go down, as investors buy gilts for safety, and vice versa), interest rates (gilts go down as interest rates go up, because gilts pay a fixed interest, and vice versa), inflation (gilts go down as fear of inflation goes up, again because the interest is fixed and the fixed capital is degraded by the inflation, and vice versa), etc.