Sovereign Gold Bond Redemption Today, Delivers 373% Returns

The redemption date for the Sovereign Gold Bond series is today. The SGB series named SGB 2-17-18 Series XIII is all set to mature on December 26, 2025 (Friday). For this series, the redemption price has been fixed at Rs 13,563.

Including the same matter, the RBI (Reserve Bank of India) said in a press conference that, "According to the notification (F.No.4(25)- (W&M)/2017), dated October 6, 2017, from the Government of India, about the Sovereign Gold Bond Scheme, the Gold Bonds will be paid back on the expiration after 8 years from the date of issue of the bonds. Therefore, the final redemption date for this bond series will be December 26, 2025”.

How to Calculate the Redemption Price for the SGB 2017-18 Series XIII?

According to the India Bullion and Jewellers Association Ltd (IBJA), the redemption price of SGB will be based on the simple average of the closing prices of gold with 999 purity from the previous three business days before the date of redemption.

According to the published report, the redemption price for the final redemption on December 26, 2025, will be Rs 13,563 (Rupees Thirteen Thousand Five Hundred and Sixty-Three) for each unit of SGB.

This redemption price is based on the average closing price of gold over three business days, that is, December 22, 2025, December 23, 2025 and December 24, 2025.

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Issue Price for the SGB Series

The issue price for Series XIII of the 2017-18 Sovereign Gold Bond scheme was officially notified to be Rs 2,866 per gram when it was issued in December 2017. Investors who applied online and paid digitally received a Rs 50 discount; therefore, the issue price for this SGB series was Rs 2,816 per gram for these investors.

How Much Profit Will Investors Make?

In 2017, investors could buy this SGB series for Rs 2,866 per gram (1 unit = 1 gram). Additionally, if they invested online or paid digitally, they received a discount of Rs 50 per gram on the investments in this SGB series. Therefore, online investors paid Rs 2,816 per gram only in 2017.

• The total return is calculated by subtracting Rs 2,866 from Rs 13,563, which equals Rs 10,697 (excluding interest). This gives a return of 373% for this SGB series, calculated with the following formula:
  
  (Rs 10,697 ÷ Rs 2,866) × 100.

• The investors who bought this SGB series online in 2017 would have made a total return of Rs 10,747. This is calculated by taking Rs 13,563 and subtracting Rs 2,816 (not including interest). This means their return is 381% for this series, which is calculated as:
  
  (Rs 10,747 ÷ Rs 2,816) × 100

This calculation shows that investors who bought the SGB 2017-18 Series 12 online in 2017 will make a profit of 373% when they redeem it. Meanwhile, those who bought it offline will see a profit of 381% upon final redemption. Additionally, the unit holders have also earned an interest of 2.5% per year on their investment in this SGB series.

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