Editor’s Note
With gold prices at historic highs, investors face a key decision on their Sovereign Gold Bonds. This article outlines expert guidance on whether to redeem early or hold until maturity, helping you align your choice with your financial goals and portfolio strategy.
In 2025, record-high gold prices have left investors uncertain about whether to redeem their Sovereign Gold Bonds (SGBs) now or hold them until maturity. Experts say that if you need money or if the gold portion of your portfolio has grown too large, partial redemption is a wise move. Meanwhile, for investors who believe in the long-term growth of gold, holding until maturity would be the right approach.
Issued by the government, these bonds are a safe and convenient option for investing in gold. These bonds pay 2.5 percent interest annually and mature in 8 years, while also offering the option of premature redemption (early withdrawal) through the RBI’s window after 5 years.
Experts believe that if you need money or if the gold allocation in your portfolio has increased significantly, partial or full redemption could be a prudent step.
Chirag Mehta of Quantum AMC said.
NS Ramaswami of Ventura said.
If you believe in the long-term strength of gold, maintaining the investment for 8 years is beneficial. The capital gain received at maturity is tax-free, and you also continue to receive regular income from the 2.5% interest.
Experts believe that there may be slight volatility in the market for now, but the demand for gold will remain strong in the long term. Factors such as continuous buying by central banks and the weakness of the dollar are supporting gold.
If you need liquidity or want to rebalance your portfolio, premature redemption would be better. However, for long-term gold buyers, holding until maturity is a more tax-efficient and secure option.