RBI has announced the premature redemption prices of gold bonds issued in the 2017-18 Series IV and 2018-19 Series II. Premature Redemption Price is announced for those wishing to withdraw early after 5 years.
The Reserve Bank of India (RBI) issues Sovereign Gold Bonds (SGB Gold Bonds) on behalf of the Central Government. These bonds offer interest and are invested in units of gold. If the price of gold increases, the income also increases along with the interest earned on it. Gold bonds can be bought from a minimum of one gram and are guaranteed by the central government, providing a sense of security. Individuals can buy gold up to a maximum of 4 kg, while trusts and universities can purchase up to 20 kg in a financial year.
Gold bonds can be bought through post offices, banks, and stock exchanges. The tenure of gold bonds is 8 years, but early withdrawal is allowed after five years. Gold bonds are issued once a quarter every financial year. For online buyers, there is a Rs. 50 discount available.
RBI has announced the premature redemption prices of gold bonds issued in the 2017-18 Series IV and 2018-19 Series II tranches. Premature Redemption Price is the price for those who wish to withdraw early after five years. The final prices of gold bonds are decided by the India Bullion and Jewelers Association (IBJA) based on the average price of 3 days prior to the specified deadline. Interest is earned on gold bonds, and there is no fear of gold being stolen. The process of investing is simple.
SGB Redemption Rates
The last date for the 2017-18 fourth series and 2018-19 second series gold bonds is April 23. The redemption price (final price) is Rs. 7325. However, the issue price per gram was just Rs. 2987, Rs. 3146, which is remarkable. Since then, the price of a gram has increased by almost 150%, along with the interest added. It can be said that the investors have made huge profits due to this.
Furthermore, April 16 has been fixed for early withdrawal of Series III 2017-18. The final price was Rs. 7260. The issue price was Rs. 2956. For example, if a 10 Gram gold buyer has invested Rs. 29,560, the current price is Rs. 72,600, along with the added interest of 2.50%.
The Reserve Bank of India announced the final redemption rates for Sovereign Gold Bonds with Key Dates for 2016-2017 Series Gold Bound Purchases. Here are the Rates for Series I, Series II, and Series III Bounds.
The Reserve Bank of India (RBI) issues gold bonds on behalf of the central government almost every quarter. These bonds have a maturity period of 8 years. The SGB gold bond issued in 2016 is about to mature, and investors are curious to know about the returns. Sovereign Gold Bonds are a great way to invest in gold. One can buy gold online and invest in it with a minimum purchase of one gram. The central government guarantees these bonds, and the RBI sells them on behalf of the government. These bonds also offer a specific interest rate yearly, currently at 2.50%.
Additionally, if the price of gold increases, the returns will also increase accordingly. Banks, post offices, and stock exchanges allow the purchase of green bonds. Trusts and universities can buy more gold bond units. The Indian Bullion Jewelers Association (IBJA) determines the gold bond prices.
The government notifies the issuance of gold bonds almost every quarter, and investors have 3 to 4 days to buy bonds and invest for 8 years. If the price of gold increases, the redemption price will be determined accordingly, including interest. The SGB gold bonds issued during 2016-17 have now expired, and the RBI has announced the final price of these bonds. Let’s take a look at the details of these bonds.
Sovereign Gold Bonds 2024 Final Redemption Key Dates of SGB
Sovereign Gold Bonds 2016- Series I: In 2016, the Series-I matured on February 8, 2024. The issue price in 2016 was Rs. 2600. Recently, the redemption price per gram was Rs. 6271, inclusive of interest. This means that more than 140 % interest has been added to the bond returns.
Sovereign Gold Bonds 2016- Series II: In 2016, the Reserve Bank of India (RBI) issued the second series of gold bonds, also known as the SGB 2016 Series II. The maturity date for this series was fixed as March 28, 2024, while the issue price was set at Rs. 2916 and the final redemption price at Rs. 6601. If the returns on the gold bonds exceed 120 %, then interest will be added to the returns.
Sovereign Gold Bonds 2016-2017-Series I: In 2016-17, the first series of Sovereign Gold Bonds was issued on August 5, 2016, at an issue price of Rs. 3119. These bonds will reach their final redemption in the first week of August 2024. The annual interest rate on these bonds is 2.75%. Because current gold prices are above Rs. 66,000, there is a chance of receiving returns of over 100%.
Sovereign Gold Bonds 2016-2017-Series II: The Sovereign Gold Bonds 2016-17 Series-II were issued on September 30, 2016, at a price of Rs. 3150 per gram and an interest rate of 2.75%. The bond matures in 2024 during the last week of September. Since gold prices have almost doubled, the returns are expected to be more than 100%.
Sovereign Gold Bonds 2016-2017-III: The Sovereign Gold Bonds 2016-17 – Series III, which is the third tranche of Gold Bonds for the year 2016-17, will be available on November 17, 2016. The price per gram will be Rs. 3007. The bonds can be redeemed on November 17, 2024. The interest rate is 2.50%, but there are opportunities to earn more than 100% returns.
