What was once seen as a modest alternative to buying gold jewellery has turned out to be one of the most rewarding investments of the decade. The Sovereign Gold Bond (SGB) 2017-18 Series VII, issued eight years ago, matures today, November 13, 2025, delivering a spectacular return of nearly 288% to investors. (AI-Generated Image)
According to the Reserve Bank of India (RBI), which manages the scheme on behalf of the government, the redemption price for this series has been fixed at Rs 12,350 per gram, a sharp rise from the issue price of Rs 2,961 per gram in October 2017. (AI-Generated Image)
This rate, the RBI said, is based on the average closing price of gold (999 purity) published by the India Bullion and Jewellers Association (IBJA) for the last three trading days – November 10, 11, and 12, 2025. (AI-Generated Image)
For investors, the process of redemption is completely seamless. The principal amount and the final interest payment will be credited automatically to their registered bank accounts. Those holding bonds in demat form will receive the proceeds through their depository participants, requiring no manual intervention or paperwork. (AI-Generated Image)
Launched in November 2015, the Sovereign Gold Bond Scheme was introduced to discourage the purchase of physical gold and promote investment in ‘paper gold’. (AI-Generated Image)
Issued by the Centre, these bonds not only track the market price of gold but also offer a fixed annual interest of 2.5%, credited semi-annually, a unique feature among gold-linked instruments. (AI-Generated Image)
Each SGB has a tenure of eight years, though investors are given the flexibility to redeem after the fifth year on interest payment dates. Importantly, no capital gains tax is levied on redemption at maturity, though the interest income remains taxable as per the investor’s slab. (AI-Generated Image)
With gold prices soaring globally amid economic uncertainty, the maturity of the 2017-18 SGB series serves as a reminder of the long-term strength of the yellow metal, and of how government-backed financial instruments can turn into veritable wealth creators. (AI-Generated Image)