Sovereign Gold Bond Investors Rejoice! Massive 294% Returns Paid Out - See How Much You Earned!

Commodities

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Updated on 13 Nov 2025, 08:59 am

Investors holding the Sovereign Gold Bond (SGB) 2018-19 Series-III will receive a significant payout of ₹12,350 per gram on November 13, 2025, as confirmed by the Reserve Bank of India (RBI). This redemption price reflects a remarkable return of approximately 294% compared to the initial issue price, which was ₹3,133 per gram for online purchases and ₹3,183 for offline purchases.

The payout value is calculated based on the simple average of closing prices of 999-purity gold, as published by the India Bullion and Jewellers Association (IBJA), for November 10, 11, and 12, 2025. This investment yielded an annualized compound growth rate (CAGR) of roughly 24% over the seven-year holding period. This substantial capital appreciation is on top of the fixed 2.5% annual interest that investors have received throughout the bond's tenure.

Under the SGB scheme, premature redemption is an option available to investors after the fifth year from the bond's issue date, specifically on the interest payment dates. Those wishing to exit early must submit their redemption requests through the bank, post office, or agent from whom they originally purchased the bonds. The SGB scheme, launched in 2015 by the Government of India, offers a paper-based alternative to physical gold ownership, providing price-linked returns and sovereign backing, alongside the fixed interest component.

Impact This news underscores the strong performance of gold as an asset class and the effectiveness of the Sovereign Gold Bond scheme in delivering attractive returns. It is likely to boost investor confidence in government-backed savings instruments and encourage more individuals to consider SGBs for their investment portfolios, especially during times of economic uncertainty or rising gold prices. The substantial gains could also influence investment patterns in the broader Indian financial market. Rating: 8/10

Difficult Terms Sovereign Gold Bond (SGB): A government security denominated in grams of gold, offered as an alternative to holding physical gold. It provides investors with returns linked to gold prices and a fixed interest rate. Premature Redemption: The act of exiting an investment, like a bond, before its scheduled maturity date. Issue Price: The original price at which a financial instrument, such as a bond or stock, is first offered to investors. Redemption Price: The price paid to the investor when a bond or other security matures or is redeemed before maturity. 999-purity gold: Gold that has a purity level of 99.9%, indicating it is almost entirely pure gold. India Bullion and Jewellers Association (IBJA): An industry body that plays a role in price discovery and setting standards for precious metals in India. CAGR (Compound Annual Growth Rate): A metric used to calculate the average annual growth rate of an investment over a specific period, assuming profits are reinvested. Annual Interest: A fixed percentage of the bond's face value paid to the investor on a yearly basis.