Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development for investors, 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 move is set to bring cheer to investors who had purchased these bonds at a price of ₹2,954 per unit, as they will now receive a return of around 333%. The same price has also been set for the premature redemption of the 2019-20 Series I, which was issued on June 11, 2019.
The Sovereign Gold Bond (SGB) scheme was introduced by the government in 2015 to reduce the demand for physical gold and to channelize the savings of investors into a more productive asset class. The scheme allows investors to purchase gold in a non-physical form, with the added benefit of earning an interest income. The bonds are denominated in grams of gold, and investors can purchase them in multiples of one gram, with a minimum investment of one gram and a maximum investment of four kilograms.
The SGB scheme has been extremely popular among investors, with many opting for it as a safe-haven asset during times of economic uncertainty. The scheme has also been instrumental in reducing the country’s gold imports, which has had a positive impact on the trade deficit. The RBI has been issuing SGBs in tranches, with each tranche having a specific issue price and redemption price.
The announcement of the final redemption price of ₹12,801 for the 2017-18 Series-XI SGBs is a significant one, as it marks a return of around 333% for investors who had purchased the bonds at ₹2,954 per unit. This is a substantial return, especially considering that the bonds were issued just over five years ago. The high returns can be attributed to the significant increase in the price of gold over the past few years, which has been driven by a combination of factors, including economic uncertainty, inflation, and geopolitical tensions.
The premature redemption of the 2019-20 Series I SGBs at the same price of ₹12,801 will also benefit investors who had purchased these bonds. Although the returns may not be as high as those for the 2017-18 Series-XI SGBs, investors will still receive a significant return on their investment.
The high returns on SGBs are a testament to the fact that gold can be a highly rewarding investment option, especially during times of economic uncertainty. The SGB scheme has provided investors with a safe and convenient way to invest in gold, without the need to physically hold the metal. The scheme has also helped to reduce the demand for physical gold, which has had a positive impact on the country’s trade deficit.
In recent years, the demand for SGBs has been high, with many investors opting for them as a safe-haven asset. The RBI has been issuing SGBs in tranches, with each tranche having a specific issue price and redemption price. The high returns on SGBs have made them an attractive investment option, especially for those who are looking to diversify their portfolios and reduce their risk.
The announcement of the final redemption price of ₹12,801 for the 2017-18 Series-XI SGBs is a significant one, and it is expected to boost investor confidence in the SGB scheme. The high returns on SGBs are a testament to the fact that gold can be a highly rewarding investment option, especially during times of economic uncertainty.
In conclusion, the announcement of the final redemption price of ₹12,801 for the 2017-18 Series-XI SGBs is a significant one, and it marks a return of around 333% for investors who had purchased the bonds at ₹2,954 per unit. The premature redemption of the 2019-20 Series I SGBs at the same price will also benefit investors who had purchased these bonds. The high returns on SGBs are a testament to the fact that gold can be a highly rewarding investment option, especially during times of economic uncertainty. Investors who are looking to diversify their portfolios and reduce their risk may want to consider investing in SGBs, which have proven to be a safe and convenient way to invest in gold.
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