Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development, the Reserve Bank of India (RBI) has announced the final redemption price for Sovereign Gold Bonds (SGBs) issued in December 2017. As per the announcement, the final redemption price for SGBs under the 2017-18 Series-XI, which was issued on December 11, 2017, has been set at ₹12,801 per unit. This means that investors who purchased these bonds at the issue price of ₹2,954 per unit will receive a staggering return of approximately 333%. This is a remarkable windfall for investors who had invested in these bonds, and it underscores the potential of gold as a lucrative investment option.
The SGBs were introduced by the Government of India in 2015 as a way to encourage investors to buy gold in a non-physical form. The bonds are denominated in grams of gold, and investors can purchase them in multiples of one gram, with a minimum investment of one gram and a maximum investment of four kilograms. The bonds have a tenure of eight years, with an option to exit after the fifth year.
The SGBs offer several benefits to investors, including a fixed interest rate of 2.50% per annum, which is paid semi-annually. The bonds are also exempt from capital gains tax, and the interest earned is also tax-free. Additionally, the bonds can be used as collateral for loans, and they are tradable on stock exchanges.
The RBI’s announcement of the final redemption price of ₹12,801 per unit for SGBs under the 2017-18 Series-XI is a testament to the appreciation of gold prices over the past few years. Gold prices have been on a steady upward trend, driven by a combination of factors, including a weakening US dollar, rising inflation, and geopolitical tensions.
The significant returns that investors will receive on their investment in SGBs issued in December 2017 will likely boost confidence in the gold bond market. It will also encourage more investors to consider investing in SGBs, which offer a unique combination of fixed returns and capital appreciation.
In addition to the final redemption price for SGBs under the 2017-18 Series-XI, the RBI has also set the same price for premature redemption of SGBs under the 2019-20 Series I, which was issued on June 11, 2019. This means that investors who had purchased these bonds can also exit their investment at the same price of ₹12,801 per unit, which is significantly higher than the issue price.
The development is a significant one for the gold bond market, and it highlights the potential of SGBs as a lucrative investment option. With the RBI’s announcement, investors who had invested in SGBs issued in December 2017 will receive a significant windfall, and it will likely encourage more investors to consider investing in these bonds.
In conclusion, the RBI’s announcement of the final redemption price of ₹12,801 per unit for SGBs under the 2017-18 Series-XI is a significant development for the gold bond market. It offers a remarkable return of approximately 333% to investors who had purchased these bonds, and it underscores the potential of gold as a lucrative investment option. With the benefits of fixed returns, capital appreciation, and tax exemptions, SGBs are an attractive investment option for those looking to diversify their portfolio.
The news of the significant returns on SGBs issued in December 2017 will likely boost confidence in the gold bond market, and it will encourage more investors to consider investing in these bonds. As the gold market continues to evolve, it will be interesting to see how investors respond to this development, and how it will impact the overall demand for SGBs.
For more information on this development and other news related to the equity market, you can 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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