RBI Announces SGB Redemption of Sovereign Gold Bond 2017-18 Series VIII: Investors Earn 317% Returns

The Reserve Bank of India (RBI) has released the final redemption details for the Sovereign Gold Bond (SGB) 2017-18 Series VIII, which was originally issued on November 20, 2017. As per the terms outlined in the initial notification (F.No.4(25)-(W&M)/2017 dated October 6, 2017), this series will complete its eight-year maturity period on November 20, 2025.

RBI Sets Rs 12,300 Redemption Price for Sovereign Gold Bond 2017-18 Series VIII

For investors, the RBI has set the maturity redemption price at Rs 12,300 per unit. This price is calculated based on the simple average of 999-purity gold prices published by the India Bullion and Jewellers Association (IBJA) over the three business days immediately preceding the redemption date-November 17, 18 and 19, 2025.

Subscribers who purchased the bond at its original issue price of Rs 2,951 per gram will receive their maturity proceeds directly in their registered bank accounts on the redemption date.

The RBI clarified that the redemption rate for this tranche is determined strictly by the IBJA's published average closing price of 999-purity gold over the three days before maturity. This transparent mechanism ensures that payouts reflect prevailing market rates without any distortion.

Investors in SGB 2017-18 Series VIII See 317% Total Return, CAGR of 19.7%

Investors who subscribed at the issue price of Rs 2,951 per gram will earn an absolute gain of Rs 9,349 per unit, translating into a total return of approximately 317% over the eight-year period. On an annualised basis, this corresponds to a compound annual growth rate (CAGR) of around 19.7%. When the 2.5% annual interest provided by SGBs is included, the effective return is even higher, making this series one of the most lucrative among SGB issuances.

Launched by the Government of India and issued by the RBI, the Sovereign Gold Bond Scheme was designed to offer investors an attractive alternative to holding physical gold. Denominated in grams of gold, SGBs provide both a fixed annual interest rate of 2.5% on the issue price and potential capital appreciation linked to market gold prices.

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