Sovereign gold bond bonanza: RBI sets Rs 12,039 redemption price for 2018–19 Series-I; investors to earn nearly 293% return – should you redeem or hold longer?
According to the RBI, the redemption price for SGB 2018–19 Series-I is Rs 12,039 per gram, based on the simple average closing price of gold of 999 purity published by the India Bullion and Jewellers Association (IBJA) for the three preceding business days — October 30, October 31, and November 3, 2025.The bonds, issued at Rs 3,064 per gram, have yielded an absolute return of nearly 293% without accounting for the interest component.
This means investors gain about Rs 8,975 per gram in capital appreciation alone.How SGB redemption price is calculatedAs per RBI rules, the redemption value of any SGB is linked to the simple average closing price of gold of 999 purity, published by IBJA for the three business days preceding the redemption date.Early redemption and maturitySGBs carry an eight-year maturity but offer premature redemption after the fifth year, on interest payment dates announced by the RBI.
The early redemption window for the 2018–19 Series-I opens on November 4, 2025.Dual benefits for investorsSovereign Gold Bonds combine gold price appreciation with a fixed annual interest, paid semi-annually.
While holding till maturity offers tax-free capital gains, early redemption provides liquidity to investors.What investors need to know about redemptionInvestors looking to redeem should:
- Verify their SGB tranche and issue date.
- Submit a premature redemption request before the deadline specified by the RBI
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