Gold Bond Investors to Get 333% Returns on December 2017 Issue
Investors who purchased Sovereign Gold Bonds (SGBs) in December 2017 are in for a windfall. The Reserve Bank of India (RBI) has announced that the final redemption price for these bonds will be ₹12,801 per unit. This means that investors who bought the bonds at ₹2,954 per unit will receive a staggering return of around 333%. The news is a significant boost for investors who have held onto these bonds for over five years, and it highlights the potential benefits of investing in SGBs.
The SGBs in question were issued on December 11, 2017, as part of the 2017-18 Series-XI. The bonds were sold at ₹2,954 per unit, which was the prevailing price of gold at the time. Since then, the price of gold has fluctuated significantly, but the RBI has now fixed the final redemption price at ₹12,801 per unit. This price will be applicable to all investors who hold these bonds, regardless of when they purchased them.
The returns on these bonds are particularly impressive when compared to other investment options. A 333% return over a five-year period is significantly higher than what most investors could expect from traditional fixed-income investments, such as fixed deposits or government bonds. It is also worth noting that SGBs offer a unique combination of returns and risk, as they are backed by the government and offer a relatively low-risk investment option.
In addition to the final redemption price for the December 2017 issue, the RBI has also set the same price for premature redemption of SGBs issued in June 2019. The 2019-20 Series I bonds, which were issued on June 11, 2019, will also be redeemable at ₹12,801 per unit. This move is likely to benefit investors who purchased these bonds and are looking to exit their investment early.
The announcement by the RBI is a significant development for investors in SGBs, and it highlights the potential benefits of investing in these bonds. SGBs offer a unique combination of returns and risk, and they can be an attractive option for investors who are looking to diversify their portfolios. With the final redemption price now fixed at ₹12,801 per unit, investors who hold these bonds can look forward to receiving a significant return on their investment.
It is worth noting that SGBs are a type of government-backed bond that is denominated in gold. They are issued by the RBI on behalf of the government, and they offer a unique combination of returns and risk. SGBs are designed to provide investors with a low-risk investment option that is linked to the price of gold. They are also exempt from capital gains tax, which makes them an attractive option for investors who are looking to minimize their tax liability.
The returns on SGBs are calculated based on the prevailing price of gold at the time of redemption. The RBI fixes the redemption price based on the average price of gold over a specified period, and this price is used to calculate the returns on the bonds. In the case of the December 2017 issue, the final redemption price has been fixed at ₹12,801 per unit, which is significantly higher than the issue price of ₹2,954 per unit.
The announcement by the RBI is a significant development for investors in SGBs, and it highlights the potential benefits of investing in these bonds. With the final redemption price now fixed at ₹12,801 per unit, investors who hold these bonds can look forward to receiving a significant return on their investment. The returns on these bonds are particularly impressive when compared to other investment options, and they demonstrate the potential benefits of investing in SGBs.
In conclusion, the announcement by the RBI that the final redemption price for SGBs issued in December 2017 will be ₹12,801 per unit is a significant development for investors in these bonds. The returns on these bonds are particularly impressive, with investors who purchased them at ₹2,954 per unit set to receive a return of around 333%. The announcement highlights the potential benefits of investing in SGBs, and it demonstrates the unique combination of returns and risk that these bonds offer. As the Indian economy continues to grow and evolve, it is likely that SGBs will remain a popular investment option for investors who are looking to diversify their portfolios and minimize their risk.
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