This marks a return of over 220% from the original issue price of ₹2,964 per gram. Investors who applied online and paid digitally received the bond at a discounted price of ₹2,914 per gram.
For them, the absolute return now stands at nearly 228%.
The RBI announced that the redemption price is based on the simple average of the closing price of gold (999 purity) published by the India Bullion and Jewellers Association (IBJA) for the preceding three business days—May 22, 23, and 26, 2025.
As per the scheme’s terms, premature redemption is allowed after five years from the date of issue, only on interest payment dates. Since the bond was issued on November 27, 2017, the May 27, 2025 interest payout date qualifies for early exit.
Key highlights:
- Issue price: ₹2,964 per gram (₹2,914 for online applicants)
- Redemption price: ₹9,560 per gram
- Holding period: 7 years (but eligible for early redemption from 5th year)
SGBs not only offer capital appreciation linked to gold prices but also pay a fixed interest of 2.5% per annum, payable semi-annually. This adds to the effective returns for long-term holders.
It must be noted that the government in Union Budget 2025 discontinued fresh issuances of the Sovereign Gold Bond scheme.
However, existing bonds remain active and will be redeemed on schedule or on eligible early redemption dates.
