The Reserve Bank of India (RBI) has announced the final redemption price of Sovereign Gold Bond (SGB) 2017-18 Series I. The final redemption is due on May 9, 2025. The SGB bond was issued in May 2017. The SGB is repayable on the expiration of eight years from the date of issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be May 9, 2025. The gold bond holders of this issue have hit a jackpot as the gold prices has been hitting new highs in the domestic market. Recently, gold prices touched Rs 1 lakh per 10 grams (24K) in some cities.
Also read: Sovereign Gold Bond 2025: RBI announces SGB premature redemption dates from April – September 2025; Check details
SGB 2017-18 Series I: What is the final redemption price?
According to the Reserve Bank of India press release dated May 2, 2025, the redemption price for the final redemption due on May 09, 2025 (May 12, May 11 and May 10 being holidays) shall be Rs 9486/- per unit of SGB based on the simple average of closing gold price for the week April 28, 2025 – May 02, 2025. (May 01, 2025, being a holiday).
The final redemption price of SGB is calculated based on the simple average of closing price of gold of 999 purity of three working days of the previous week (Monday to Friday) as published by the India Bullion and Jewellers Association Limited.
SGB 2017-18 Series I: Issue price
The issue price for SGB 2017-18 Series I in May 2017 was fixed at Rs. 2951 per gram. Investors who made purchase online are eligible for discount of Rs 50 on the issue price. For them, the applicable issue price will be Rs 2901/- (Rs 2951- 50 = 2901/-).
Also read: Fresh SGB issuance unlikely: How much will you gain if you buy Sovereign Gold Bonds from stock market
SGB 2017-18 Series I: How much profit did investors make?
The Sovereign Gold Bond (SGB) 2017-18 Series I, issued on May 12, 2017, had an issue price of Rs 2,951 per gram. The final redemption price as per RBI is Rs 9486. The SGB is due for redemption on May 9, 2025.
In absolute terms, an investor has earned a return of 221% over eight years without considering the interest component.
However, the investor would have earned annual interest of 2.5% per annum on their gold bond holdings.
Tax-free maturity amount on SGB
The maturity amount received by the SGB holder will be tax-exempt. Suppose you invested Rs 1,47,550, based on the issue price of Rs 2,951, to get 50 grams of gold. On maturity, you will get Rs 4,74,300 based on the final price of Rs 9,486.
Hence, you get the gains of Rs 3,26,750 tax-free.
What are Sovereign Gold Bonds?
The RBI issues Sovereign Gold Bonds (SGBs) as government securities on behalf of the Indian government. These bonds are denominated in grams of gold and provide an alternative to holding physical gold while offering periodic interest.
Important FAQs on SGB
Are there any risks in investing in SGBs?
There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.
Who is eligible to invest in the SGBs?
Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
Whether joint holding will be allowed?
Yes, joint holding is allowed.
Can a Minor invest in SGB?
Yes. The application on behalf of the minor has to be made by his/her guardian.
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