Investors in the Sovereign Gold Bond (SGB) 2017-18 Series I are set to receive a substantial return of 221% upon redemption today, May 9, 2025. The Reserve Bank of India (RBI) has announced a final redemption price of ₹9,486 per gram, based on the average closing price of 999 purity gold during the week of April 28 to May 2, 2025. This marks a significant increase from the issue price of ₹2,951 per gram, which was ₹2,901 for online investors after a ₹50 per gram discount.
The SGB 2017-18 Series I was issued with an 8-year maturity period, offering investors an annual interest of 2.5% on the nominal value, payable semi-annually. The final redemption amount is tax-free, providing a lucrative investment option for those seeking to capitalise on gold’s price appreciation. For instance, an investment of ₹1,47,550, equivalent to 50 grams of gold at the issue price, would now yield ₹4,74,300, resulting in a profit of ₹3,26,750.
The SGB scheme, launched by the Government of India in 2015, was designed to provide an alternative to physical gold, offering investors the opportunity to earn interest while benefiting from gold price movements. The RBI’s final redemption price reflects the robust performance of gold in recent years, underscoring the effectiveness of the SGB as a long-term investment vehicle.
Also Read: Gold edges higher as market weighs implications of US-UK deal