Final Redemption Price of Sovereign Gold Bond (SGB) 2017-18 Series-III Due on October 16

The Sovereign Gold Bond (SGB) 2017-18 Series-III, issued on October 16, 2017, is set for final redemption on October 16, 2025. This bond offers a fixed interest rate along with the final redemption price, which is determined based on the average closing price of gold. As the eighth year approaches, investors should be aware of the redemption details.

Final Redemption Price Determination

As per the Government of India notification, the final redemption price for SGBs is based on the simple average of the closing prices of gold (999 purity) for the three business days prior to the redemption date. For the SGB 2017-18 Series-III due on October 16, 2025, the redemption price has been calculated at ₹12,567 per unit. 

This figure is derived from the average closing prices of gold on October 13, 2025, October 14, 2025, and October 15, 2025, as published by the India Bullion and Jewellers Association Ltd (IBJA).

Understanding the Sovereign Gold Bond Scheme

Introduced by the Reserve Bank of India on behalf of the Government of India, the Sovereign Gold Bond Scheme aims to reduce physical gold demand and encourage investment in financial products. 

The bonds are issued in denominations of grams of gold and offer a fixed interest rate, along with the benefit of price appreciation based on the movement of gold. The scheme is a popular choice for those looking to invest in gold without the hassle of storing physical gold.

Read More:Dhanteras 2025: Can You Invest in Sovereign Gold Bonds (SGBs)?!

What Does This Mean for Investors?

The final redemption price of ₹12,567 per unit is an attractive payout for SGB holders, especially for those who invested in 2017 when the price of gold was significantly lower. This final redemption amount reflects the movement of gold prices over the past eight years, offering both capital appreciation and interest income on the bond.

Conclusion

The final redemption of Sovereign Gold Bond 2017-18 Series-III will offer a significant return to investors, with the redemption price set at ₹12,567 per unit based on the recent gold price averages. This scheme continues to be a stable investment vehicle, offering returns tied to gold price fluctuations while also providing fixed interest payments over the years.

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.