The Sovereign Gold Bond (SGB) 2018-19 Series-I, issued on May 4, 2018, has matured today, delivering a remarkable 386% return on investment.
The bond's final redemption price of ₹14,901 per gram marks a significant appreciation from its original issue price of ₹3,064 per gram.
The redemption value of the Sovereign Gold Bond reflects a substantial increase from the initial investment price. Initially issued at ₹3,064 per gram, today's redemption sees a unit price of ₹14,901.
This increase translates into an absolute return of ₹11,837 per gram, representing an impressive 386.32% growth.
Investors who initially invested ₹1,00,000 in this SGB at its launch now see the value rise to approximately ₹4,86,320, showcasing the bond's ability to yield generous returns.
Furthermore, these bonds pay interest at a fixed rate of 2.50% per annum, which is credited semi-annually, enhancing the overall returns on maturity.
The final redemption price of the Sovereign Gold Bond is calculated using the simple average closing price of 999 purity gold over the 3 business days leading up to maturity.
Specifically, the rates used for the May 4, 2026, maturity were derived from the closing gold prices on April 28, 29, and 30, as per data provided by the India Bullion and Jewellers Association (IBJA).
Read More: SGB 2019–20 Series VI Delivers 295% Gains as RBI Fixes Redemption at ₹14,931!
Sovereign Gold Bonds are government securities issued in grams of gold, serving as a viable alternative to physical gold investment.
These bonds are managed by the Reserve Bank of India on behalf of the Government of India, offering a secure mode of investment coupled with the added benefit of consistent return rates.
Investors purchase these bonds in cash, and redemption at maturity is also performed in cash, thus eliminating storage and security concerns associated with physical gold.
The maturation of the 2018-19 Series-I Sovereign Gold Bond stands as testament to the sound investment strategy these government securities can provide. With a 386% return, this highlights their potential for long-term wealth accumulation and security.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 5, 2026, 12:57 PM IST
Team Angel One
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