Source: The Economic Times
The Reserve Bank of India (RBI) has declared the final redemption price of the Sovereign Gold Bond (SGB) 2017-18 Series II, which matures on July 28th, 2025. Investors will be paid ₹9,924 per gram, which means they received a return of 250.67% for the eight-year investment without considering interest.
The bond was offered on July 28, 2017, for ₹2,830 a gram. The price of gold has increased significantly over the 8-year period, producing excellent returns for investors.
How the Final Redemption Price Was Determined
The final redemption price is arrived at using the average price of 999 purity gold quoted by the India Bullion and Jewellers Association (IBJA). RBI used the average quoted prices of gold from July 21 to 25, 2025, to fix the final value at ₹9,924 per gram.
Total Returns for Investors
Investors who purchased the bond in 2017 for ₹2,830 will receive per gram of gold when it matures in 2025. As a result, this provides a return of 250.67%, excluding the fixed interest of 2.5% per year that was paid bi-annually.
In addition to price gain, investors also received interest income during the holding period, which makes the investment rewarding.
Redemption Process
SGBs have an 8-year maturity period, and holders are notified in writing about the maturity date one month prior to the actual maturity date. Upon maturity, the redemption money will be credited into the bank account linked with the SGB. Make sure your bank account details are accurate and current for the redemption.
What Are Sovereign Gold Bonds?
Sovereign Gold Bonds (SGB) are securities issued by the government that are denominated in gold. They serve as a more secure and convenient option for purchasing gold instead of physical gold. SGBs are backed by the Indian government, offering fixed interest and capital gains.
Are there going to be any new SGBs?
The government has not yet said when the next SGB series will be launched. In response to Parliament, the government indicated that new SGB issues will be linked to market conditions, gold prices, and borrowing costs;
The latest SGB tranche was issued in February 2024.
Summary at a Glance
- Bond Name: SGB 2017-18 Series II
- Issue Date: July 28, 2017
- Maturity Date: July 28, 2025
- Issue Price: ₹2,830 per gram
- Redemption Price: ₹9,924 per gram
- Return 250.67% (without interest)
- Annual Interest: 2.5%, paid semi-annually
- Last SGB issue: February 2024
- Next SGB Tranche: Yet to be announced
In Conclusion: SGB 2017-18 Series II has yielded great returns to date on a safe, government-backed product. The rise in gold and interest income makes SGBs an attractive long-term investment.
