Sovereign Gold Bond (SGB) 2017-18 Series VI Matures, Delivering Over 300% Price Return

The Sovereign Gold Bond (SGB) 2017-18 Series VI, issued on November 6, 2017, has now matured, offering investors a significant payout. The Reserve Bank of India (RBI) announced the redemption price at ₹12,066 per gram. This final price is calculated based on the simple average of the closing prices of 999 purity gold from India Bullion and Jewellers Association (IBJA) on October 31, November 3, and November 4, 2025.

When this SGB series was first issued, offline investors paid ₹2,945 per gram, while online applicants paid ₹2,895 per gram. Considering the issue price of ₹2,945, investors have seen their capital grow by approximately 309% solely due to price appreciation over the eight-year tenure. This figure does not include the additional 2.5% annual interest paid semi-annually throughout the bond's life, further enhancing the overall returns.

The redemption process for SGBs is automatic upon maturity. Investors do not need to apply separately; the maturity proceeds are directly credited to their registered bank accounts by the RBI.

Impact This news highlights the strong performance of gold as an investment and the success of the SGB scheme in providing an alternative to physical gold. It indicates robust returns for government bond investors and reinforces confidence in sovereign-backed instruments. The significant appreciation may also influence future investor sentiment towards gold and similar asset classes. Rating: 8/10

Definitions: Sovereign Gold Bond (SGB): A government security denominated in grams of gold, offered by the Reserve Bank of India on behalf of the Government of India. It provides an alternative to holding physical gold. Redemption Price: The price at which a bond or security is repaid to the investor at maturity. India Bullion and Jewellers Association (IBJA): An industry body that publishes benchmark prices for gold and silver in India.