The final redemption price for the Sovereign Gold Bond (SGB) Scheme 2015-I, initially issued on November 30, 2015, has been set by the Reserve Bank of India (RBI) at Rs 6,132 per unit. Maturing on November 30, 2023, these bonds have achieved a compound annual growth rate (CAGR) of 10.88%, significantly appreciating from their initial issue price of approximately Rs 2,540 per unit.
In addition to capital appreciation, these bonds have provided an annual interest of 2.75 percent, a fixed rate that was later adjusted to 2.5 percent in subsequent SGB issuances. Sovereign Gold Bonds are government securities, denominated in grams of gold, serving as an alternative to owning physical gold. These bonds, issued by the RBI on behalf of the Indian Government, offer investors a secure way to invest in gold.
Investors have the option for early redemption of these bonds after five years from the issue date on specified coupon payment dates. If held in demat form, the bonds can be traded on stock exchanges and are transferable to other eligible investors.
One of the key benefits of investing in SGBs is the protection of the quantity of gold paid for. Investors receive the prevailing market price of gold at the time of redemption or premature redemption, ensuring the market value of gold is maintained at maturity.
SGBs also eliminate issues typically associated with physical gold, such as making charges and purity concerns, especially relevant to gold in jewelry form. The minimum investment is set at one gram, with a maximum subscription limit of 4 kg for individuals and Hindu Undivided Families (HUF), and 20 kg for trusts and similar entities as specified by the government.
The RBI launched the 2023-2024 Series II of the Sovereign Gold Bond Scheme on September 11, 2023, with the price fixed at Rs 5,923 per gram of gold, continuing to provide a secure and profitable investment option in gold.
