Gilt-edged market means

“Gilt-edged” historically and in modern finance denotes high-quality, low-default-risk bonds issued by governments (gilts). Government securities (G‑Secs) are explicitly described as “risk-free gilt-edged instruments,” since they are tradable debt instruments issued by central or state governments and carry negligible default risk [1]. The term’s origin and common usage identify gilts as government bonds—originally UK Treasury issues printed with gilded edges—and the name now broadly refers to similar sovereign debt instruments in other jurisdictions. Therefore, the gilt-edged market is the market for government securities (central and state government debt), not bullion, arms, or pure metals markets [2].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.5 Government Securities > p. 45
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 3. Regulation of Foreign Exchange Market, Govt. Securities Market and Money Market > p. 68