205% Return on Sovereign Gold Bonds: RBI Declares Redemption Price for SGB 2018-19 Series-V

The Reserve Bank of India has announced the premature redemption price for the Sovereign Gold Bond 2018-19 Series-V, offering investors an impressive 205% return based on the market-linked payout. The bonds were issued in January 2019 and are now eligible for early redemption after completing 5 years of holding.

₹9,820 Redemption Price Yields a 205% Return

The redemption price declared by RBI for the SGB 2018-19 Series-V is ₹9,820 per gram. These gold bonds were originally issued at ₹3,214 per gram in January 2019. This results in an absolute return of ₹6,606 per gram, translating to a 205.56% gain, excluding annual interest payments.

How the Redemption Price Was Calculated

The RBI stated that the redemption price is based on the simple average of gold closing prices (999 purity) published by India Bullion and Jewellers Association Ltd for the last three business days before redemption, specifically July 17, July 18, and July 21, 2025.

Fixed Interest Earnings Enhance Returns

In addition to capital gains, SGB investors have earned a fixed interest of 2.50% per annum on the initial investment amount. This interest, paid semi-annually, is credited directly to the investor’s bank account. The final interest payment will be made on redemption along with the principal amount.

Read More: SGB 2019–20 Series II Offers 184% Gain: RBI Sets ₹9,791 Redemption Price for July 16, 2025 Premature Exit!

Premature Redemption Rules Explained

SGBs have an 8-year maturity period but can be redeemed after 5 years from the issue date only on coupon payment dates. To initiate premature redemption, investors must approach the concerned bank, SHCIL office, post office, or agent at least 1 day before the coupon date, with a notice period of 30 days.

Benefits of Sovereign Gold Bonds Over Physical Gold

SGBs eliminate risks associated with physical storage and offer assured interest returns. They are tradable on stock exchanges in demat form and can be transferred to other eligible investors, offering liquidity without compromising safety.

Conclusion

RBI’s recent announcement of ₹9,820 as the redemption value for SGB 2018-19 Series-V highlights the strength of gold investment over time. With over 205% capital returns plus regular interest income, SGBs remain a reliable avenue for long-term wealth protection.

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