Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a welcome move for investors, 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 means that investors who bought the bonds at ₹2,954 per unit will get a return of around 333%. The RBI has also set the same price for premature redemption of 2019-20 Series I with an issue date of June 11, 2019.
The Sovereign Gold Bond (SGB) scheme was launched by the Government of India in 2015 to reduce the demand for physical gold and to provide an alternative investment option for investors. The scheme allows investors to buy gold in a non-physical form, with the added benefit of earning interest on their investment. The bonds are denominated in units of one gram of gold and can be purchased in multiples of one gram, with a minimum investment of one gram and a maximum investment of four kilograms.
The SGB scheme has been quite popular among investors, with many opting for it as a hedge against inflation and market volatility. The scheme has also helped to reduce the country’s gold imports, which has had a positive impact on the current account deficit.
The announcement of the final redemption price of ₹12,801 for the December 2017 issue is a significant one, as it means that investors who bought the bonds at ₹2,954 per unit will get a return of around 333%. This is a substantial return, especially considering that the bonds were issued just five years ago. The high return is due to the significant increase in the price of gold over the past few years, which has resulted in a substantial appreciation in the value of the bonds.
The RBI’s decision to set the same price for premature redemption of 2019-20 Series I with an issue date of June 11, 2019, is also a positive move. This will allow investors who bought the bonds in 2019 to exit their investment at a higher price, even if they have not completed the full tenure of the bond.
The SGB scheme has undergone several changes since its launch in 2015. The government has introduced new features such as allowing investors to buy and sell the bonds on stock exchanges, and providing a sovereign guarantee on the bonds. The scheme has also been made more accessible to investors, with the minimum investment amount being reduced to one gram of gold.
The success of the SGB scheme can be gauged from the fact that it has helped to mobilize significant amounts of gold from investors. According to the RBI, the scheme has helped to mobilize over 70 tonnes of gold since its launch in 2015. This is a significant amount, considering that the country’s gold imports have been steadily increasing over the past few years.
In conclusion, the announcement of the final redemption price of ₹12,801 for the December 2017 issue of SGBs is a significant one, as it means that investors who bought the bonds at ₹2,954 per unit will get a return of around 333%. The RBI’s decision to set the same price for premature redemption of 2019-20 Series I with an issue date of June 11, 2019, is also a positive move. The SGB scheme has been a successful initiative, and its popularity is expected to continue in the coming years.
The scheme has provided an alternative investment option for investors, and its success can be gauged from the fact that it has helped to mobilize significant amounts of gold from investors. The government’s efforts to make the scheme more accessible and attractive to investors have also paid off, with the scheme becoming one of the most popular investment options in the country.
As the Indian economy continues to grow and evolve, it is expected that the demand for gold will remain strong. The SGB scheme is likely to play a significant role in meeting this demand, and its success is expected to continue in the coming years.
In the current market scenario, where investors are looking for safe and secure investment options, the SGB scheme provides a viable alternative. The scheme’s success can be attributed to its unique features, such as the sovereign guarantee and the option to buy and sell the bonds on stock exchanges.
Overall, the announcement of the final redemption price of ₹12,801 for the December 2017 issue of SGBs is a positive development for investors, and it is expected to boost the popularity of the scheme even further.
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