Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development, 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, which was issued on December 11, 2017. This news has sent shockwaves of excitement among investors who had invested in these bonds, as they will now receive a staggering return of around 333% on their investment. To put this into perspective, investors who had purchased the bonds at ₹2,954 per unit will now receive ₹12,801 per unit, resulting in a massive profit.
The Sovereign Gold Bond (SGB) 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 gold in a non-physical form. The scheme allows investors to buy gold in a dematerialized form, which is held in a demat account, and the returns are linked to the price of gold. The scheme has been highly successful, with many investors opting for it as a safe-haven asset and a hedge against inflation.
The RBI has also announced that the same price of ₹12,801 will be applicable for premature redemption of 2019-20 Series I, which was issued on June 11, 2019. This means that investors who had invested in this series will also be able to redeem their bonds at the same price, resulting in significant gains.
The high returns on the SGB scheme can be attributed to the significant increase in the price of gold over the past few years. Gold prices have been on a rising trend, driven by factors such as geopolitical tensions, economic uncertainty, and inflation. As a result, the value of the SGBs has also increased, resulting in high returns for investors.
The SGB scheme has been highly popular among investors, with many opting for it as a safe and secure investment option. The scheme offers a fixed interest rate of 2.5% per annum, which is paid semi-annually, and the returns are exempt from capital gains tax. The scheme also offers a high degree of liquidity, with investors able to sell their bonds on the stock exchange or redeem them prematurely.
The high returns on the SGB scheme are expected to attract even more investors to the scheme, which will help to reduce the demand for physical gold and encourage investors to invest in gold in a non-physical form. The scheme is also expected to help the government to reduce its gold imports, which will have a positive impact on the country’s trade deficit.
In conclusion, the announcement of the final redemption price of ₹12,801 for Sovereign Gold Bonds under 2017-18 Series-XI is a significant development for investors who had invested in these bonds. The high returns of around 333% are a testament to the success of the SGB scheme, which has been highly popular among investors. The scheme offers a safe and secure investment option, with high returns and a high degree of liquidity. As the price of gold continues to rise, the SGB scheme is expected to remain a popular investment option for investors looking to invest in gold.
The SGB scheme is also expected to play a critical role in the government’s efforts to reduce the demand for physical gold and encourage investors to invest in gold in a non-physical form. The scheme has been highly successful, with many investors opting for it as a safe-haven asset and a hedge against inflation. As the scheme continues to grow in popularity, it is expected to have a positive impact on the country’s trade deficit and the overall economy.
Investors who are looking to invest in the SGB scheme can do so through a variety of channels, including online platforms, banks, and stock exchanges. The scheme is open to all investors, including individuals, trusts, and institutions, and the minimum investment amount is ₹1,000. The scheme offers a fixed interest rate of 2.5% per annum, which is paid semi-annually, and the returns are exempt from capital gains tax.
In addition to the SGB scheme, there are several other investment options available to investors who are looking to invest in gold. These include gold exchange-traded funds (ETFs), gold mutual funds, and physical gold. However, the SGB scheme offers a unique combination of safety, security, and high returns, which makes it an attractive option for investors.
Overall, the announcement of the final redemption price of ₹12,801 for Sovereign Gold Bonds under 2017-18 Series-XI is a significant development for investors who had invested in these bonds. The high returns of around 333% are a testament to the success of the SGB scheme, which has been highly popular among investors. The scheme offers a safe and secure investment option, with high returns and a high degree of liquidity, and is expected to remain a popular investment option for investors looking to invest in gold.
About the Author
