Gold Bond Investors to Get 333% Returns on December 2017 Issue
The Reserve Bank of India (RBI) has announced that the final redemption price of ₹12,801 for Sovereign Gold Bonds under the 2017-18 Series-XI, which was issued on December 11, 2017. This news has brought a huge smile to the faces of investors who purchased these bonds, as they are set to receive a staggering return of around 333%. The bonds were initially sold at ₹2,954 per unit, and the significant increase in the redemption price is a testament to the growth in gold prices over the past few years.
For those who may not be familiar with Sovereign Gold Bonds, they are a type of investment instrument issued by the RBI on behalf of the Government of India. These bonds are denominated in grams of gold and are backed by the government, making them a relatively safe and secure investment option. The main objective of these bonds is to reduce the demand for physical gold and to channelize the gold investments into a more productive and efficient manner.
The Sovereign Gold Bond Scheme was launched in 2015, and since then, it has become a popular investment option for those looking to invest in gold without the hassle of physically storing and managing gold. The bonds are issued periodically, and investors can purchase them through various channels, including banks, post offices, and online platforms.
The December 2017 issue of the Sovereign Gold Bond was one of the earliest issues under this scheme, and it has now matured, resulting in the RBI announcing the final redemption price. The significant increase in the redemption price is a result of the growth in gold prices over the past few years. Gold prices have been on an upward trend, driven by various factors such as geopolitical tensions, economic uncertainty, and increased demand from central banks and investors.
The return of 333% is a significant one, and it highlights the potential of investing in gold through the Sovereign Gold Bond Scheme. Investors who purchased these bonds in December 2017 would have paid ₹2,954 per unit, and now they will receive ₹12,801 per unit, resulting in a profit of ₹9,847 per unit. This is a substantial return, especially considering that the bonds were held for a period of around 6 years.
In addition to the final redemption price for the December 2017 issue, the RBI has also set the same price for premature redemption of the 2019-20 Series I, which was issued on June 11, 2019. This means that investors who purchased these bonds can now redeem them prematurely at the same price of ₹12,801 per unit.
The announcement of the final redemption price for the Sovereign Gold Bonds has significant implications for investors. It highlights the potential of investing in gold through this scheme and demonstrates the growth in gold prices over the past few years. Investors who are looking to invest in gold may consider purchasing Sovereign Gold Bonds, as they offer a secure and efficient way to invest in gold without the hassle of physically storing and managing gold.
In conclusion, the RBI’s announcement of the final redemption price for the Sovereign Gold Bonds under the 2017-18 Series-XI is a significant one, resulting in a return of around 333% for investors. This highlights the potential of investing in gold through this scheme and demonstrates the growth in gold prices over the past few years. Investors who are looking to invest in gold may consider purchasing Sovereign Gold Bonds, as they offer a secure and efficient way to invest in gold.
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