Anisha Kumari | Jul 2, 2025 |
Sovereign Gold Bonds Give Up to 240% Returns: RBI Announces Redemption Price
The Reserve Bank of India has announced the redemption price for two Sovereign Gold Bond (SGB) schemes the 2017-18 Series-XIV and the 2018-19 Series-IV, these were available for premature withdrawal on July 1, 2025. These gold bonds have a maturity period of eight years but if an investor wants to exit then they can exit after five years from the date of issue.
The redemption price is decided on the basis of average closing price of gold with 999 purity. The calculation is done using the average gold price of the last three business days before the redemption date. For this redemption the prices from June 26, June 27 and June 30, 2025 were taken into account.
The redemption price has been fixed at Rs. 9,628 per unit for both the SGB 2017-18 Series-XIV and SGB 2018-19 Series-IV.
This series was first issued in January 2018 at a price of Rs. 2,831 per gram. This investment has increased to nearly 240% with the current redemption price of Rs. 9,628, providing a substantial gain to the investor.
This series was issued on January 2019 at a price of Rs. 3,119 per gram. At the current redemption value of Rs. 9,628, the absolute return comes to Rs. 6,509 per gram. This translates to a return of about 208.69% while excluding any interest earned.
Investors also earn 2.5% fixed annual interest, in addition to the capital gain. This interest is paid twice a year, and the final interest is provided at the time of maturity along with the principal amount. This interest amount is not included in the redemption price.
Those who wish to go for early redemption need to follow a few simple steps:
A month before the bond matures or becomes eligible for early withdrawal, a reminder is sent to the investors. The proceeds are transferred directly to the registered bank account on the redemption date.
The investors must inform the bank or post office if there are any updates done or changes made in personal details like the bank account number or email ID to avoid any issues.
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