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 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 set to receive a staggering return of around 333%. To put this into perspective, investors who bought the bonds at ₹2,954 per unit will now receive a redemption price that is nearly four times their initial investment.
For those who may not be familiar with Sovereign Gold Bonds, they are a type of investment instrument issued by the Government of India, with the aim of reducing the demand for physical gold. These bonds are denominated in grams of gold and are available for purchase in various series throughout the year. The bonds have a tenure of eight years, with an option to exit after the fifth year.
The RBI’s announcement not only brings cheer to investors who had purchased the bonds in December 2017 but also sets a precedent for future bond issues. The significant returns on investment are likely to attract more investors to this asset class, which can provide a hedge against inflation and market volatility.
In addition to the final redemption price for the 2017-18 Series-XI bonds, the RBI has also set the same price for premature redemption of 2019-20 Series I bonds, which had an issue date of June 11, 2019. This means that investors who had purchased these bonds can now choose to redeem them at the same price, providing them with a substantial return on their investment.
The Sovereign Gold Bond scheme has been a successful initiative by the Government of India, with the aim of mobilizing household savings and reducing the country’s reliance on gold imports. The scheme has seen significant interest from investors, with many opting for this investment instrument as a way to diversify their portfolios and hedge against market risks.
The returns on investment for the December 2017 issue of Sovereign Gold Bonds are a testament to the scheme’s success. With a return of 333%, investors who had purchased these bonds have seen their investment grow significantly over the past eight years. This is a remarkable achievement, considering the volatility of the markets and the various economic challenges that the country has faced during this period.
For investors who are considering purchasing Sovereign Gold Bonds, this news is likely to be a significant incentive. The potential for high returns on investment, combined with the security of a government-backed instrument, makes these bonds an attractive option for those looking to diversify their portfolios.
In conclusion, the RBI’s announcement of the final redemption price for the December 2017 issue of Sovereign Gold Bonds is a significant development for investors. With returns of around 333%, investors who had purchased these bonds are set to receive a substantial payout. This news is likely to attract more investors to this asset class, and we can expect to see increased interest in Sovereign Gold Bonds in the coming months.
As the Indian economy continues to grow and evolve, investment instruments like Sovereign Gold Bonds are likely to play an increasingly important role. With their potential for high returns and security, these bonds are an attractive option for investors looking to diversify their portfolios and hedge against market risks.
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