
Investors in the Sovereign Gold Bond (SGB) 2016-17 Series IV are set for a tax-free windfall, as the Reserve Bank of India (RBI) has announced the final redemption price — nearly tripling their investment.
Issued in February 2017 at Rs 2,943 per gram, these bonds will now be redeemed at Rs 8,624 per gram, giving investors a 193% return. Redemption is scheduled for March 17, 2025, based on the average closing price of 999 purity gold between March 10 and March 13, 2025, as published by the India Bullion and Jewellers Association (IBJA).
Additionally, RBI has confirmed premature redemption for SGB 2019-20 Series IV, originally issued on September 17, 2019, also maturing on March 17, 2025. Investors redeeming early will receive Rs 8,634 per gram, based on gold prices from March 11 to March 13, 2025.
Experts point out that holding Sovereign Gold Bonds until maturity offers several key advantages:
Gold prices continue to surge, hitting a record Rs 88,310 per 10 grams and crossing $3,000 per troy ounce globally. On MCX, gold has risen over 14% this year, adding Rs 11,000 — reaffirming gold's role as a safe, high-return asset.
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