Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development, the Reserve Bank of India (RBI) has announced that the final redemption price of ₹12,801 for Sovereign Gold Bonds under 2017-18 Series-XI with an issue date of December 11, 2017. This news has sent a wave of excitement among investors who had purchased these bonds, as they are now set to receive a whopping return of around 333%. To put this into perspective, investors who bought the bonds at ₹2,954 per unit will now receive nearly four times their initial investment.
The Sovereign Gold Bond (SGB) scheme was introduced by the Government of India in 2015, with the objective of reducing the demand for physical gold and encouraging investors to invest in a more secure and lucrative asset class. The scheme allows investors to buy gold in a non-physical form, with the added benefits of earning interest and avoiding the hassle of storing physical gold.
The 2017-18 Series-XI SGB issue, which was open for subscription from December 11, 2017, to December 15, 2017, had a face value of ₹2,954 per unit. The issue price was determined based on the average price of gold of 999 purity, as published by the India Bullion and Jewellers Association Ltd. (IBJA), for the week preceding the subscription period.
Now, with the RBI announcing the final redemption price of ₹12,801, investors who had bought these bonds can expect to receive a return of around 333%. This is a significant windfall for investors, especially considering the fact that the interest rates on fixed deposits and other traditional investment options have been relatively low in recent years.
In addition to the 2017-18 Series-XI SGB issue, the RBI has also set the same price for premature redemption of 2019-20 Series I with an issue date of June 11, 2019. This means that investors who had purchased these bonds can also expect to receive a significant return on their investment, although the exact percentage return will depend on the specific issue price and the holding period.
The SGB scheme has been a highly successful initiative, with the government issuing multiple tranches of these bonds over the years. The scheme has not only helped to reduce the demand for physical gold but also provided investors with a secure and lucrative investment option.
In recent years, the SGB scheme has gained significant traction, with many investors opting for these bonds as a hedge against inflation and market volatility. The scheme’s popularity can be gauged from the fact that the government has issued multiple tranches of SGBs, with each tranche receiving an overwhelming response from investors.
The RBI’s announcement of the final redemption price for the 2017-18 Series-XI SGB issue is a significant development, as it provides investors with a clear idea of the returns they can expect on their investment. With the scheme’s popularity expected to continue in the coming years, it is likely that the government will issue more tranches of SGBs, providing investors with a secure and lucrative investment option.
In conclusion, the RBI’s announcement of the final redemption price for the 2017-18 Series-XI SGB issue is a significant development, as it provides investors with a clear idea of the returns they can expect on their investment. With the scheme’s popularity expected to continue in the coming years, it is likely that the government will issue more tranches of SGBs, providing investors with a secure and lucrative investment option.
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