Sovereign Gold Bond 2017-18 Series-VI Maturity: Investors To Earn 307% Return Over 8 Years as Gold Prices Soar

The Sovereign Gold Bond 2017-18 Series-VI, issued by the Reserve Bank of India on behalf of the Government of India, will mature on November 6, 2025. The RBI has fixed the final redemption price for this series at Rs 12,066 per gram of gold, giving massive returns of around 307% over eight years for long-term investors.

RBI Announces Final Redemption Price for SGB 2017-18 Series-VI

According to the Reserve Bank Of India, the redemption price of the Sovereign Gold Bond is calculated based on the average closing price of gold (999 purity) published by the India Bullion and Jewellers Association (IBJA) over the last three business days before maturity.

Investors who bought this series in November 2017 at the issue price of Rs 2,961 per gram will receive four times the original investment value upon redemption, in addition to having earned 2.5% annual interest, paid semi-annually, over the investment period.

Massive Returns for Long-Term SGB Investors

The SGB 2017-18 Series-VI stands as one of the most profitable government-backed investment schemes in recent years. Investors who stayed invested for the full eight-year tenure have enjoyed:

Capital appreciation of nearly 307%, as gold prices surged from Rs 2,961/gm to Rs 12,066/gm.

Annual interest of 2.5%, providing an additional layer of steady income.

Why Sovereign Gold Bonds Offer a Smart Alternative?

The Sovereign Gold Bond scheme was launched by the Government of India in November 2015 as a safe and convenient alternative to physical gold ownership. The bonds, issued by the RBI, are denominated in grams of gold and offer dual benefits like

• Fixed interest rate of 2.5% per annum, payable semi-annually.
• Capital gains linked to market gold prices.

Besides offering the convenience of digital investment, SGBs also do not have the risks associated with storing physical gold. Investors can also trade the bonds on stock exchanges, transfer ownership, or even use them as collateral for loans.

SGBs are better than physical gold as they are backed by the government and can be held in demat or certificate form.

Tax Benefits on Sovereign Gold Bonds

One of the major advantages of investing in SGBs is their tax efficiency.

As per Section 43 of the Income-tax Act, 1961, the interest earned on Sovereign Gold Bonds is taxable.

However, the capital gains arising from redemption at maturity are exempt from tax,

In cases where bonds are transferred or sold before maturity on stock exchanges, investors can claim indexation benefits to reduce tax liability.

Tenure and Early Redemption Option

Each Sovereign Gold Bond has a fixed maturity period of eight years, with an option for early redemption after five years, but only on interest payment dates. The 2017-18 Series-VI completes its full tenure in November 2025, which will allow investors to redeem at the RBI-declared price and enjoy full benefits of both capital gains and interest.

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