Editor’s Note
The RBI has announced the final redemption details for the 2017-18 Sovereign Gold Bond series, revealing a remarkable return of approximately 316% for investors since issuance. This underscores the scheme’s potential as a lucrative, non-physical avenue for gold investment.
Sovereign Gold Bond Delivers Massive ReturnsThe Reserve Bank of India (RBI) has announced the final redemption date and price for the Sovereign Gold Bond (SGB) scheme’s Series 2017-18. This bond has delivered investors a return of approximately 316% from its issue date until now.
A bond with an issue price of ₹2,895 per gram has now seen its redemption price fixed at ₹12,066. In simple terms, ₹2,895 has grown more than fourfold to ₹12,066 over eight years. This amounts to a net profit of 316.78%. Additionally, there is a separate annual interest of 2.5% over the eight-year period. For those who availed a ₹50 discount for online payment, making the effective issue price ₹2,845, the profit reached up to 324.11%.
If you have invested in this scheme, you do not need to take any action. According to the scheme’s terms, redemption at maturity happens automatically, and investors are not required to submit any separate request. On the maturity date, the amount is directly credited to the investor’s registered bank account.
Long-term capital gains from the transfer are eligible for indexation benefits. This means no tax is payable on the 316% profit. Interest is credited directly to the bank account on an annual basis. While premature redemption was possible after the 5th year on the next interest payment date, most investors held on for the full 8 years to earn substantial profits.
Based on this, the average of October 31, November 3, and November 4, 2025, was taken.
The government launched the Sovereign Gold Bond scheme in November 2015. Investment in SGBs earns an annual interest of 2.5%. This interest is credited to the investor’s bank account every six months. Upon maturity or premature redemption, the final interest installment is paid along with the principal.