RBI Fixes ₹9,628 Price for Gold Bonds; Returns Soar to 240%
The Reserve Bank of India (RBI) has fixed a redemption price of ₹9,628 per gram for two tranches of Sovereign Gold Bonds (SGBs) – the 2017–18 Series XIV and the 2018–19 Series IV – that are eligible for premature redemption as of July 1, 2025. This substantial payout marks one of the highest returns for a government-backed investment in recent years, offering investors capital appreciation of up to 240% over the initial issue price.
Gold Bonds Generate Massive Returns
The 2017–18 Series XIV was originally issued in January 2018 at ₹2,831 per gram. With the redemption price set at ₹9,628, investors are realizing a return of nearly 240% over the holding period, excluding interest. Similarly, the 2018–19 Series IV, issued at ₹3,119 per gram, has delivered over 208% in capital gains.
This significant appreciation reflects the surge in global gold prices over the past seven years, driven by macroeconomic uncertainty, inflationary trends, and strong investor demand for safe-haven assets.
Fixed Interest Over and Above Price Gain
Apart from the capital gains, SGB investors are also entitled to a fixed annual interest of 2.5%, paid semi-annually. While the RBI’s redemption price excludes this interest income, it adds further value to the already high returns from these bonds. For long-term investors, the combination of consistent interest and capital appreciation has made SGBs one of the best-performing asset classes.
Redemption Eligibility and Process
SGBs allow early redemption after five years from the date of issue, but only on designated interest payment dates. Investors who wished to redeem their bonds on July 1 needed to submit redemption requests through their original purchase channel—such as banks, post offices, or demat accounts—at least 10 days prior. Those who missed the window will need to wait until the next due date, typically January 1 or July 1 of the following year.
No New Issues, Existing Bonds Remain Valid
The government has halted fresh issuance of Sovereign Gold Bonds following the 2025 Union Budget, redirecting its focus toward alternative investment products. However, all previously issued bonds remain valid, and redemptions will continue according to their respective schedules. Investors are advised to monitor upcoming interest payment dates and plan redemptions strategically based on portfolio goals and market conditions.
