Sovereign Gold Bond Scheme: Investors in Sovereign Gold Bonds (SGBs) are set to receive stunning returns. Those who invested in Series X of the Sovereign Gold Bonds, issued on December 4, 2017, during the financial year 2017-18, will enjoy a return of 158% on their investment.
The Reserve Bank of India (RBI) has announced the redemption price for this series, setting it at ₹7,646 per gram for investors who initially purchased the bonds at ₹2,961 per gram.
The Series X bonds (SGB 2017-18 Series X), issued on December 4, 2017, offered premature maturity after five years. Investors have also benefited from an annual interest rate of 2.50%, paid semi-annually, throughout the investment period.
Redemption Price Fixed at ₹7,646 Per Gram
The Reserve Bank of India (RBI) has set the redemption price for this series of Sovereign Gold Bonds at ₹7,646 per gram. Investors who bought these bonds in December 2017 at ₹2,961 per gram will now get a return of 158% on their investment. This means their investment has more than doubled over this period.
Annual Interest Adds to the Overall Return
In addition to the price increase, investors have also been earning 2.50% interest per year on their investments. This interest is paid every six months, further boosting their total returns.
How the Redemption Price Was Determined
The premature redemption price of the Sovereign Gold Bond is determined based on the average price of 999-purity gold over three days. This price is taken from the closing rates declared by the India Bullion and Jewelers Association Ltd (IBJA).
Maturity Price Based on November-December Gold Rates
The maturity price for this bond series was calculated using the average gold prices from November 29, 2024, to December 3, 2024. This gives the final value of the bond when it matures, based on recent gold prices.
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