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Sovereign Gold Bonds Offer 212% Returns: Key Details on Premature Redemption
212% return on SGB premature redemption date: Gold bond turns Rs 1 lakh investment into Rs 3.12 lakh
The Economic Times
Image: The Economic Times
The Reserve Bank of India (RBI) has set the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series-VIII at ₹16,012 per unit, effective May 18, 2026. This represents a 212.30% return on the initial investment of ₹5,127 per gram, turning a ₹1 lakh investment into approximately ₹3.12 lakh.
- 01The premature redemption price of ₹16,012 per unit is based on the average closing price of gold over three days prior to the redemption date.
- 02Investors will receive interest at a fixed rate of 2.50% per annum, credited semi-annually.
- 03The minimum investment in SGBs is one gram, with maximum limits of 4 kg for individuals and 20 kg for trusts.
- 04SGBs serve as a substitute for physical gold, allowing investors to hold gold in a digital format.
- 05The bonds will be redeemed in cash on maturity, providing a secure investment option backed by the Government of India.
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The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series-VIII, set at ₹16,012 per unit, effective from May 18, 2026. This price reflects a 212.30% return on the initial investment of ₹5,127 per gram, translating a ₹1 lakh investment into approximately ₹3.12 lakh. The redemption price is calculated based on the average closing price of 999 purity gold over the three working days preceding the redemption date. SGBs, issued by the RBI on behalf of the Government of India, provide a fixed interest rate of 2.50% per annum, credited semi-annually to investors' bank accounts. The bonds are available for purchase in denominations of one gram, with a maximum limit of 4 kg for individuals and 20 kg for trusts. This investment option allows individuals to hold gold in a secure, digital format without the need for physical storage.
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Investors can expect substantial returns on their gold investments, making SGBs an attractive option for wealth accumulation.
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