Sovereign Gold Bond
The last payment of Sovereign Gold Bond (SGB) 2017-18 Series-II will be today. The Reserve Bank of India (RBI) has fixed its final redemption price as the 8 -year period of these SGBs has been completed. RBI has fixed the final redemption price of Rs 9,924 per unit. This price has been fixed on a simple average of the gold closing price between July 21 and July 25, 2025.
The redemption price of the SGB is fixed based on a week (Monday to Friday) of the 999 purity price of gold, which the India Bullion and Jewelers Association Limited (IBJA) issues.
Sovereign Gold Bond (SGB) 2017-18 Series-II
RBI opened subscription for SGB 2017-18 Series-II from 10 July 2017 to 14 July 2017. The date of release of bond was 28 July 2017. Then the issue price of SGB 2017-18 Series-II was fixed at Rs 2,830 per gram. Those who were purchasing online were given a discount of 50 rupees per unit.
How much did investors benefit?
If we talk about the profits of investors, the SGB 2017-18 Series-II has given a tremendous return of about 250.67% in 8 years, which has been withdrawn at the rate of Rs 9,924. This return is except an online discount of Rs 50 and interest received every six months. Remember, SGB also gets 2.5% interest every year.
What is SGB Redemption Rules?
SGBS can be withdrawn after 8 years from the date of release. However, there is also a premature redemption facility on the dates of interest payment from the 5th year.
Why better SGB than physical gold?
In this, the investor has complete protection of the amount of gold purchased because the redemption or premature redemption is paid according to the market price. SGB is more beneficial than keeping physical gold. There is no danger of keeping gold, stolen or missing in it. Market price and interest on maturity also get interest every year. Apart from this, there is no problem of making charge and purity on keeping gold in jewelry. These bonds live in RBI records or in demat form, so there is no fear of being lost.