Gold prices have seen a tremendous jump in recent times. In July 2025, gold gave about 2% returns to investors. But, in the meantime, Sovereign Gold Bond (SGB) has shocked everyone with a brilliant return of 99.67%. The Reserve Bank of India (RBI) has announced the price of premature redemption of SGB 2020-21 Series-IV, which is 14 July 2025. Let us tell you about it in detail.
According to the RBI’s press release of 11 July 2025, the SGB redemption price is based on the average closing price of the last three trading days (9, 10, July 11) with 999 purity, which has been stated by the India Bullion and Jewelers Association (IBJA) on a daily basis. Right now, this price has been fixed at Rs 9,688 per unit for SGB 2020-21 Series-IV.
How much will you get returns?
SGB 2020-21 Series-IV was released at Rs 4,852 per gram in July 2020. A return of Rs 4,836 per unit will get a return of Rs 9,688 per unit. Interest is not connected to it. The same, talk in percentage 99.67%will be.
This is calculation- [(9,688 – 4,852) / 4,852] × 100 = 99.67%.
SGB gives investors a fixed interest rate of 2.50% per year on initial investment. This interest is deposited in the bank account every six months, and the final interest is attained with the principal on the mentority. SGB gives benefits such as increase in gold prices, 2.50% interest, government safety, and tax exemption on maturity. This is a safe and beneficial option for investors.
What is Sovereign Gold Bond?
SGBs are government securities issued by the RBI by the Government of India, which are evaluated in the gram of gold. This is the option to keep physical gold. Investors pay the price in cash and there is a redemption in cash on maturity. Maturity is 8 years old, but premature redemption is possible after the fifth year.