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 with an issue date of December 11, 2017. This news has sent shockwaves of excitement among investors who had purchased these bonds, as they are 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 ₹12,801 per unit, representing a significant increase in their investment.
The Sovereign Gold Bond (SGB) scheme was introduced by the Indian government in 2015 to reduce the demand for physical gold and to provide an alternative investment option for investors. The scheme allows investors to purchase gold in a non-physical form, with the added benefit of earning interest on their investment. The bonds are denominated in grams of gold and are issued by the RBI on behalf of the government.
The 2017-18 Series-XI issue, which was opened for subscription on December 11, 2017, had a issue price of ₹2,954 per unit. At that time, the price of gold was around ₹29,000 per 10 grams. Fast forward to the present, and the price of gold has increased significantly, resulting in a substantial increase in the value of the SGBs.
The final redemption price of ₹12,801 per unit is a testament to the fact that investing in SGBs can be a lucrative option for investors. The returns on SGBs are directly linked to the price of gold, and as the price of gold increases, the value of the SGBs also increases. This makes SGBs an attractive option for investors who are looking to diversify their portfolio and earn returns that are linked to the price of gold.
In addition to the 2017-18 Series-XI issue, the RBI has also set the same price for premature redemption of the 2019-20 Series I with an issue date of June 11, 2019. This means that investors who had purchased the bonds under this series can also redeem them at the same price of ₹12,801 per unit, provided they do so before the maturity date.
The announcement of the final redemption price has been welcomed by investors, who are thrilled with the prospect of earning such high returns on their investment. The SGB scheme has been a huge success, with many investors opting for this option as a way to invest in gold without having to physically hold the metal.
The returns on SGBs are also tax-free, making them an attractive option for investors who are looking to earn tax-free returns. The interest earned on SGBs is also exempt from tax, making them a lucrative option for investors who are looking to earn regular income from their investment.
In conclusion, the announcement of the final redemption price of ₹12,801 per unit for Sovereign Gold Bonds under the 2017-18 Series-XI is a significant development for investors who had purchased these bonds. The returns of around 333% are a testament to the fact that investing in SGBs can be a lucrative option for investors. As the price of gold continues to fluctuate, investors can expect to earn significant returns on their investment, making SGBs an attractive option for those looking to diversify their portfolio and earn returns that are linked to the price of gold.
The SGB scheme has been a huge success, and the announcement of the final redemption price is likely to attract even more investors to this option. With the price of gold expected to continue to rise in the coming years, investing in SGBs could be a wise decision for investors who are looking to earn significant returns on their investment.
The RBI’s decision to set the same price for premature redemption of the 2019-20 Series I is also a welcome move, as it provides investors with the flexibility to redeem their bonds at a price that is linked to the current market price of gold.
Overall, the announcement of the final redemption price of ₹12,801 per unit for Sovereign Gold Bonds under the 2017-18 Series-XI is a significant development for investors, and is likely to attract even more investors to this option. With the SGB scheme continuing to be a popular option for investors, it will be interesting to see how the scheme evolves in the coming years, and how investors respond to the announcement of the final redemption price.
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