The Reserve Bank of India (RBI) has announced that the final redemption price for the Sovereign Gold Bond (SGB) 2017–18 Series-IV will be ₹12,704 per gram, payable on October 23, 2025.
The redemption value is based on the simple average of the closing price of gold (999 purity) published by the India Bullion and Jewellers Association (IBJA) over the previous three business days: October 17, 20, and 22, 2025.
This ensures that investors receive a fair payout reflecting the latest market price of gold at the time of maturity.
The bond was originally issued on October 23, 2017, at ₹2,987 per gram. With the final redemption price set at ₹12,704, investors have earned an absolute return of 325%, excluding the annual 2.5% interest that these bonds offer.
In rupee terms, the value gain amounts to ₹9,717 per gram. Calculated as a percentage, that’s roughly 325%, showing impressive long-term gains for those who stayed invested for the full eight-year period.
Apart from capital appreciation, SGB investors also receive 2.5% annual interest, paid semi-annually on the initial investment amount. The final interest payout will be made along with the redemption amount.
Moreover, capital gains from SGB redemption are exempt from tax for individual investors, making them one of the most efficient ways to invest in gold.
SGBs, launched by the government in 2015, are safe, paper-based alternatives to physical gold. They eliminate concerns related to storage and purity while offering both price appreciation and regular income.
Meanwhile, RBI data shows that India’s gold reserves crossed 880 metric tonnes in the first half of FY2025–26, valued at around USD 95 billion. Global economic and geopolitical uncertainties have driven up international gold prices, encouraging both central banks and retail investors to increase gold holdings.
Read More: Fact Check: Can You Really Earn ₹14,000 Through Inter-State Silver Arbitrage?
With an impressive 325% return and tax-free maturity, the 2017–18 SGB series highlights why Sovereign Gold Bonds remain one of the best long-term investment options for Indian households looking for safety, steady returns, and convenience without the hassles of physical gold.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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: Oct 23, 2025, 10:14 AM IST
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