Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a recent announcement, the Reserve Bank of India (RBI) revealed 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 sent shockwaves of excitement among gold bond investors, as it translates to a whopping return of around 333% for those who purchased the bonds at ₹2,954 per unit. Additionally, the RBI has set the same price for premature redemption of the 2019-20 Series I, which was issued on June 11, 2019.
For investors who took the plunge and invested in the Sovereign Gold Bonds back in December 2017, this is a dream come true. The bonds were issued at a price of ₹2,954 per unit, and with the final redemption price being ₹12,801, the returns are staggering. To put it into perspective, if an investor had purchased 10 units of the gold bonds in 2017, they would have paid ₹29,540. Now, with the final redemption price being ₹12,801 per unit, their investment would be worth ₹128,010. This represents a return of approximately 333%, which is an unprecedented gain in the investment world.
The Sovereign Gold Bond 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 transparent way. The scheme allows investors to purchase gold in a demat form, which can be easily traded and redeemed. The bonds are issued in tranches, and the price is fixed based on the market price of gold at the time of issuance.
The RBI’s announcement has also set the stage for premature redemption of the 2019-20 Series I gold bonds, which were issued on June 11, 2019. Investors who purchased these bonds can now redeem them at the same price of ₹12,801 per unit, which is a significant gain considering the current market price of gold.
This news is a testament to the potential of investing in gold, which has long been considered a safe-haven asset. Gold has historically performed well during times of economic uncertainty, and the current market scenario is no exception. With the global economy facing numerous challenges, including inflation, geopolitical tensions, and economic slowdown, gold has emerged as a preferred investment option for many.
The RBI’s decision to fix the final redemption price at ₹12,801 per unit is also a reflection of the government’s efforts to promote gold investing and reduce the country’s reliance on physical gold imports. The move is expected to encourage more investors to invest in gold bonds, which will not only help to reduce the trade deficit but also provide a more secure and transparent way of investing in gold.
In conclusion, the RBI’s announcement is a windfall for gold bond investors who purchased the bonds in December 2017. The returns of around 333% are unprecedented and demonstrate the potential of investing in gold. As the investment landscape continues to evolve, it is essential for investors to remain informed and adapt to changing market conditions. With the current market scenario and the government’s efforts to promote gold investing, it is an exciting time for investors to consider adding gold to their investment portfolios.
For more information on this and other investment-related news, please visit the following link: https://www.outlookmoney.com/amp/story/invest/equity/amfi-data-equity-mf-inflows-rise-21-mom-to-rs-29911-crore-in-november-2025
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