It seems that all types of gold investors are having a gala time, as every form of investment in the precious metal — whether physical gold, gold funds, or Sovereign Gold Bonds (SGBs) — has delivered massive returns over the past few years. In this write-up, we will discuss the SGB 2017-18 Series III investment, which has shattered all previous return records.
Investors of the Sovereign Gold Bond (SGB) 2017–18 Series III have made a massive 338% return in the last eight years. This bond series on October 16 completed its full maturity tenure of eight years. The RBI had fixed the final redemption price for this tranche at Rs 12,567 per gram.
The SGB issue was opened for subscription between October 9 and 11, 2017, at Rs 2,866 per gram.
Over the last eight years, the Series III SGB investment has delivered a total gain of Rs 9,701 per gram. Its absolute return stood at an impressive 338%, excluding the annual interest payout of 2.5% that investors have been receiving throughout the tenure.
The redemption value was calculated based on the simple average of gold prices (999 purity) as published by the India Bullion and Jewellers Association (IBJA) for October 13, 14, and 15, 2025.
Tenure and return rules
The total tenure of any SGBs is eight years, but investors are allowed to opt for premature redemption after the completion of five years. Upon maturity, investors get the prevailing market price of gold. In addition, SGBs offer a fixed annual interest rate of 2.5%, paid semi-annually to bondholders.
How many series have been redeemed?
Over the past five years, several SGB series have either matured or become eligible for premature redemption.
Between April and September 2024, a total of 26 series were offered for premature redemption, including tranches issued during 2016–17, 2017–18, and 2018–19.
According to the RBI’s April–September 2025 list, 33 series were scheduled for premature redemption, covering tranches from 2017–18 to 2020–21.
Some of the earliest tranches, such as the November 2015 issue, have now fully matured, and investors have already received their final payouts.