The Reserve Bank of India (RBI) has announced the final redemption price of Sovereign Gold Bond (SGB) 2017-18 Series-IV. The last redemption date of gold bonds issued under this series has been fixed as 23 October 2025. This means that investors will now be able to withdraw their entire investment money on this date.
SGB is a government scheme in which you invest in gold, but do not buy actual gold. In return you get bonds whose value is based on the price of gold. These bonds are issued for a tenure of eight years, but investors are given the option to make pre-redemption even after five years.
Redemption price and return on investment
RBI has said that on October 23, 2025, the redemption price of bonds of this series will be Rs 12,704 per unit. This price has been decided on the basis of the market price of gold, which is based on the average gold price of the first three days of October 2025. This series was initially released at the rate of approximately Rs 2,971 per gram. This means investors will get a profit of about 325% in this eight year period. This return is in addition to the interest, which shows that those investing in gold have benefited significantly in the long term.
Premature Redemption and Terms
People investing in SGB can hold the bonds for eight years, but can also redeem prematurely after completion of five years. This means that if an investor wants to return the bond after five years due to his need, he can do so. As per RBI rules, this redemption process can be completed easily. The government considers this scheme as a safe and profitable option to invest in gold.
What to do in case of death of the investor?
If the investor dies, his nominee has the right to receive the bond amount. The nominee can contact the concerned office and submit the claim as per the government rules. If nomination has not been made, the heirs of the deceased investor can make a claim with the relevant documents. This rule also applies to minor investors.
Why is SGB special?
In SGB, interest is also available along with the real price of gold, which makes it more beneficial than buying gold. Apart from this, it is easy to keep and there is no risk of theft. This is a government guaranteed investment, due to which your money remains safe. Investors can get better returns by holding this bond for a long time and can convert it into cash even after five years if needed.