Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development, the Reserve Bank of India (RBI) has announced the final redemption price of ₹12,801 for Sovereign Gold Bonds under the 2017-18 Series-XI, which had an issue date of December 11, 2017. This news is a boon for investors who purchased these bonds at ₹2,954 per unit, as they are now set to receive a staggering return of around 333%. The same price has also been set for the premature redemption of the 2019-20 Series I, which had an issue date of June 11, 2019.
For those who may not be familiar with Sovereign Gold Bonds, they are a type of investment product offered by the Government of India, where investors can purchase gold in a non-physical form. These bonds are denominated in grams of gold and offer a unique opportunity for investors to buy and hold gold without the hassle of physical storage. The bonds are issued by the RBI on behalf of the Government of India and are available for purchase through various channels, including banks, stock exchanges, and online platforms.
The Sovereign Gold Bond Scheme was launched in 2015, with the objective of reducing the demand for physical gold and increasing the savings rate in the country. The scheme has been highly successful, with thousands of investors purchasing these bonds every year. The bonds offer a fixed interest rate, which is paid semi-annually, and the principal amount is repayable at the end of the maturity period.
The December 2017 issue of Sovereign Gold Bonds was a highly popular one, with many investors taking advantage of the opportunity to purchase gold at a relatively low price. At the time of issue, the price of gold was around ₹2,954 per 10 grams, and investors who purchased the bonds at this price are now set to receive a significant return on their investment.
The return of around 333% is a staggering one, and it highlights the potential of Sovereign Gold Bonds as a long-term investment product. The return is calculated based on the difference between the issue price and the redemption price, and it takes into account the interest payments made to investors over the life of the bond.
It’s worth noting that the premature redemption price for the 2019-20 Series I, which had an issue date of June 11, 2019, has also been set at ₹12,801. This means that investors who purchased these bonds can also redeem them at this price, although they may not receive the same level of return as those who invested in the December 2017 issue.
The announcement of the final redemption price for the Sovereign Gold Bonds has been welcomed by investors, who are set to receive a significant return on their investment. The news is also a testament to the success of the Sovereign Gold Bond Scheme, which has been instrumental in reducing the demand for physical gold and increasing the savings rate in the country.
In conclusion, the announcement of the final redemption price for the Sovereign Gold Bonds is a significant development for investors who purchased these bonds in December 2017. With a return of around 333%, investors are set to receive a significant return on their investment, highlighting the potential of Sovereign Gold Bonds as a long-term investment product. As the scheme continues to evolve and grow, it’s likely that we’ll see even more innovative products and investment opportunities emerge, offering investors a range of options to suit their needs and goals.
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