SGB redemption today: How gold’s unstoppable rally boosts Sovereign Gold Bond returns over 338%

2 min read | Updated on October 16, 2025, 14:20 IST

SUMMARY

The bond was initially issued on October 16, 2017, at a price of ₹2,964 per gram, with the maturity payout now set at ₹12,567.

SGBs give an interest of 2.50% (fixed rate) per annum on the initial investment amount. | Image: Shutterstock

The Reserve Bank of India (RBI) has announced the final redemption price for Sovereign Gold Bond (SGB) 2017-18 Series-III. The final redemption date is today, October 16, 2025, the RBI has said in a statement.

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Final redemption of SGB 2017-18 Series-III

The RBI has said in a statement that, in terms of GOI Notification F.No.4(25)-W&M/2017 dated October 06, 2017 (SGB 2017-18 Series-III - Issue date October 16, 2017) on Sovereign Gold Bond Scheme, the Gold Bond shall be repayable on the expiration of eight years from the date of issue of the Gold Bond. Accordingly, the final redemption date of the above tranche shall be October 16, 2025.

What is the redemption price of SGB 2017-18 Series-III?

Further, the redemption price of SGB shall be based on the simple average of the closing price of gold of 999 purity of the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).

Accordingly, the redemption price for final redemption due on October 16, 2025, shall be ₹12,567/- (Rupees Twelve Thousand Five Hundred and Sixty-Seven Only) per unit of SGB based on the simple average of closing price of gold of 999 purity for the three business days i.e., October 13, 2025, October 14, 2025, and October 15, 2025.

338% absolute returns for investors

The bond was originally issued on October 16, 2017, at a price of ₹2,964 per gram. With the maturity payout now fixed at ₹12,567, investors stand to earn an absolute return of 338%, excluding the additional annual interest of 2.5% that SGB holders have been receiving during the tenure.

The absolute return amounts to ₹12,567 minus ₹2,866, which equals ₹9,701 (excluding interest). This represents a return of 338%, calculated as (9,701 ÷ 2,866) × 100.

SGBs are automatically credited to the investor’s bank account upon maturity. Additionally, any capital gains earned from redemption by individuals are exempt from tax.

What are Sovereign Gold Bonds (SGBs)?

Sovereign Gold Bonds (SGBs) are Government securities denominated in grams of gold, a great and safe alternative to holding physical gold. The scheme was introduced in 2015 to help reduce the demand for physical gold.

SGBs give an interest of 2.50% (fixed rate) per annum on the initial investment amount. This interest is credited semi-annually to your bank account, and the last interest will be payable on maturity along with the principal.