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The Sovereign Gold Bond (SGB) 2017-18 Series-III will be redeemed on Thursday (October 16), marking the completion of its eight-year tenor. The Reserve Bank of India (RBI) has fixed the final redemption price at ₹12,567 per gram, calculated on the basis of the simple average of IBJA’s closing price of 999 purity gold for October 13, 14 and 15.
Over 320% absolute returns for investors
The bond was originally issued on October 16, 2017, at a price of ₹2,964 per gram. With the maturity payout now fixed at ₹12,567, investors stand to earn an absolute return of nearly 324%, or about 4.24 times their initial investment — excluding the additional annual interest of 2.5% that SGB holders have been receiving during the tenure.
SGBs are redeemed directly into the investor’s bank account on maturity.
Capital gains on redemption by individuals are tax-exempt, further enhancing post-tax returns compared to physical gold or gold ETFs.
About the Sovereign Gold Bond Scheme
Launched in 2015, the SGB scheme was designed to channel savings into financial assets.
According to Minister of State for Finance Pankaj Chaudhary, the government has mobilised 146.96 tonnes of gold worth ₹72,275 crore through 67 tranches up to March 31, 2025. As of June 15, 2025, around 18.81 tonnes have already been redeemed by investors.
Chaudhary also noted that elevated global gold prices, driven by geopolitical risks, have increased the government’s interest burden on outstanding SGBs. He said that future issuances will be considered after reviewing borrowing costs, alongside broader debt management via government securities and treasury bills.
Over 320% absolute returns for investors
The bond was originally issued on October 16, 2017, at a price of ₹2,964 per gram. With the maturity payout now fixed at ₹12,567, investors stand to earn an absolute return of nearly 324%, or about 4.24 times their initial investment — excluding the additional annual interest of 2.5% that SGB holders have been receiving during the tenure.
SGBs are redeemed directly into the investor’s bank account on maturity.
Capital gains on redemption by individuals are tax-exempt, further enhancing post-tax returns compared to physical gold or gold ETFs.
About the Sovereign Gold Bond Scheme
Launched in 2015, the SGB scheme was designed to channel savings into financial assets.
According to Minister of State for Finance Pankaj Chaudhary, the government has mobilised 146.96 tonnes of gold worth ₹72,275 crore through 67 tranches up to March 31, 2025. As of June 15, 2025, around 18.81 tonnes have already been redeemed by investors.
Chaudhary also noted that elevated global gold prices, driven by geopolitical risks, have increased the government’s interest burden on outstanding SGBs. He said that future issuances will be considered after reviewing borrowing costs, alongside broader debt management via government securities and treasury bills.
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