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Investors in the SGB 2017–18 are set for exceptional returns after the Reserve Bank of India (RBI) announced the final redemption; details
Sovereign Gold Bonds (SGBs)
Investors in the Sovereign Gold Bond (SGB) 2017–18 Series-VIII are set for exceptional returns after the Reserve Bank of India (RBI) announced the final redemption price for the tranche maturing on November 20, 2025.
The RBI has fixed the redemption payout at Rs 12,300 per unit, calculated using the simple average of 999-purity gold prices published by the India Bullion and Jewellers Association on November 17, 18 and 19.
The Series-VIII bond was originally issued in November 2017 at Rs 2,951 per gram. Based on the latest redemption price, investors will gain Rs 9,349 per unit, translating into a total return of about 317% over eight years.
Key Numbers
- Issue price (2017): Rs 2,951
- Redemption price (2025): Rs 12,300
- Absolute gain: Rs 9,349 per unit
- Total return: Over 300% in eight years
In annualised terms, this works out to a 19.7% compound annual growth rate (CAGR)—excluding the additional 2.5% yearly interest that SGBs paid until 2023, which further boosts overall returns.
What happens at redemption?
- Investors do not need to take any action.
- The RBI directly credits the maturity amount to the linked bank account.
- For individuals, capital gains on redemption are fully tax-exempt.
- If sold before maturity, indexation benefits apply to long-term capital gains.
SGBs have an eight-year tenure but offer an early exit option after the fifth year—on interest payment dates—giving investors flexibility depending on market conditions.
Why are the returns so strong?
SGBs track the domestic market price of gold. With gold prices rising sharply since 2017, the bond has captured the entire upside while also offering annual interest, making the 2017–18 tranche one of the most rewarding government-backed retail investments in recent years.
Launched in 2015 to curb physical gold demand, the SGB scheme has not seen fresh issuances since last year due to elevated global prices.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 20, 2025, 14:24 IST
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