Gold Bond Investors to Get 333% Returns on December 2017 Issue
In a significant development for investors, 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 announcement has sent a wave of excitement among investors who had purchased these bonds, as it translates to a staggering return of around 333% on their investment. The same price has also been set for premature redemption of 2019-20 Series I with an issue date of June 11, 2019.
To put this into perspective, investors who had bought the bonds at ₹2,954 per unit in December 2017 will now receive ₹12,801 per unit, a gain of ₹9,847 per unit. This represents a return of 333% over the five-year period, which is a significant windfall for those who had invested in these bonds. The Sovereign Gold Bond scheme was introduced by the government to reduce the demand for physical gold and to provide an alternative investment option for investors.
The Sovereign Gold Bond scheme has been a popular investment option for those looking to invest in gold without the hassle of physical storage and security concerns. The scheme allows investors to buy gold in a dematerialized form, which can be easily stored in a demat account. The bonds are denominated in grams of gold, and investors can buy a minimum of 1 gram and a maximum of 4 kilograms of gold per financial year.
The returns on Sovereign Gold Bonds are linked to the price of gold, and investors receive the prevailing market price of gold at the time of redemption. The bonds also carry an interest rate of 2.5% per annum, which is paid semi-annually. The interest is taxable, but the capital gains are exempt from tax if the bonds are held for at least three years.
The announcement of the final redemption price of ₹12,801 per unit is a significant boost for investors who had purchased the bonds in December 2017. It highlights the potential for long-term gains in the Sovereign Gold Bond scheme and reinforces the idea that investing in gold can provide a hedge against inflation and market volatility.
The RBI’s decision to set the same price for premature redemption of 2019-20 Series I with an issue date of June 11, 2019, is also significant. This means that investors who had purchased these bonds can now redeem them at the same price, which is ₹12,801 per unit. This provides an opportunity for investors to lock in their gains and exit the investment if they so desire.
In conclusion, the announcement of the final redemption price of ₹12,801 per unit for Sovereign Gold Bonds under 2017-18 Series-XI is a significant development for investors. It highlights the potential for long-term gains in the Sovereign Gold Bond scheme and reinforces the idea that investing in gold can provide a hedge against inflation and market volatility. Investors who had purchased these bonds in December 2017 will receive a return of around 333%, which is a staggering windfall.
As the investment landscape continues to evolve, it is essential for investors to stay informed about the various investment options available to them. The Sovereign Gold Bond scheme is an attractive option for those looking to invest in gold, and the recent announcement by the RBI is a testament to its potential for long-term gains.
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