MUMBAI: The Reserve Bank has announced the final redemption price and date of sovereign gold bonds (SGBs) under the 2017-18 series IV offering the bondholders a whopping 325 percent return on investment as the price of the yellow metal has zoomed since then and had touched Rs 1.3 lakh for ten grams.
According to a notification issued by the RBI on Wednesday, the final redemption date for this tranche is October 23 and the final redemption price is fixed at Rs 12,704 per unit of SGB.
The bond was issued on October 23, 2017, at a price of Rs 2,987 per gram. As the RBI has fixed Rs 12,704 as the maturity payout, the total gain for an investor comes out to be Rs 9,717. This amount be even more for those investors who applied online and made the payment through the digital mode. For such investors, the issue price of the SGB stood at Rs 2,937 per gram.
Even if we consider the absolute return of Rs 9,717, it represents a full 325 percent over the buying price, even excluding the additional interest of 2.5 percent that SGB holders have been receiving semi-annually during the tenure.
The SGB redemption price is calculated based on the simple average of the closing price of gold of 999 purity from three business days prior, as published by the India Bullion and Jewellers Association, from the date of redemption. In the current case, the closing prices were the average on October 17-20, 2025, and October 22, 2025 have been taken into consideration.
SGBs are automatically credited to the bank account of an investor upon maturity. Moreover, any capital gains tax arising on the redemption of these bonds by an individual is exempted. Also, gold bonds issued by the RBI can be used as collateral security for availing of any loan.
