Sovereign gold bonds redemption: RBI sets Rs 10,070 as premature redemption price for two SGB collection, investors gain up to 147% returns

The Reserve Bank of India (RBI) has introduced that investors in Sovereign Gold Bonds (SGB) 2019-20 Series-IX and 2020-21 Series-V can decide for premature redemption on August 11, 2025, at Rs 10,070 per unit.These government-backed bonds, with an eight-year tenure, enable early redemption solely after the fifth 12 months from the date of situation and solely on curiosity payout dates, in accordance to an ET report. The most up-to-date SGB tranche—SGB 2023-24 Series IV—was issued in February 2024.What it means for youIf you invested within the SGB 2019-20 Series-IX in September 2019 at Rs 4,070 per gram, your premature redemption will yield an absolute gain of Rs 6,000 per unit—about 147%—excluding the two.5% annual curiosity. Investors within the SGB 2020-21 Series-V, issued in August 2020 at Rs 5,334 per gram, will earn an 89% absolute return, or Rs 4,736 per unit, excluding curiosity.On prime of those capital good points, the bonds pay a set 2.5% curiosity yearly, credited semi-annually to your checking account. The last curiosity instalment is paid together with principal on maturity.How the redemption price is calculatedAccording to the RBI’s August 8 press launch, the price relies on the straightforward common of closing gold costs (999 purity) over the three enterprise days earlier than redemption—August 6, 7 and eight—revealed by the India Bullion and Jewellers Association Ltd (IBJA).What you want to do now

The SGB scheme affords a secure various to bodily gold, eradicating storage and purity considerations whereas delivering regular curiosity earnings and potential price appreciation