Latest news with #SGBs
India.com
2 days ago
- Business
- India.com
Forget Physical Gold, This RBI Gold Scheme Is Giving Massive 251% Returns
photoDetails english 2938064 The Sovereign Gold Bond (SGB) 2017-18 Series-II, issued on July 28, 2017, matured on July 28, 2025, with a redemption price of Rs 9,924 per gram, reflecting a remarkable 250.67 percent capital gain over the original issue price of Rs 2,830. In addition, investors earned 2.5 percent annual interest, totaling approximately 20 percent over the 8-year tenure. While this interest is taxable, capital gains for individuals upon maturity are exempt from tax. Issued by the RBI for the Government of India, SGBs are a secure and convenient alternative to physical gold, offering market-linked returns without storage risks or making charges. Updated:Jul 28, 2025, 02:37 PM IST Final Redemption Date and Price 1 / 7 The Reserve Bank of India (RBI) has set the final redemption of Sovereign Gold Bond (SGB) 2017-18 Series-II on July 28, 2025, at a price of Rs 9,924 per gram. Calculation of Redemption Price 2 / 7 The redemption price is determined by the simple average of the closing price of gold of 999 purity for the week preceding the date of redemption (July 21–25, 2025), as published by the India Bullion and Jewellers Association Ltd (IBJA). Issuance Details and Returns 3 / 7 This SGB tranche was issued on July 28, 2017, at an issue price of Rs 2,830 per gram (excluding online discount). The final payout provides investors with a 250.67 percent return (Rs 7,094 gain per unit) over the 8-year holding period, excluding interest. Interest Earnings 4 / 7 Investors also earned a 2.50 percent annual interest (paid semi-annually) on the nominal value throughout the tenure, leading to a cumulative interest gain of around 20 percent across the maturity period. Taxation Benefits 5 / 7 Interest income on SGBs is fully taxable as per the Income-tax Act, 1961. Capital gains on maturity are exempt from tax for individuals, making the redemption proceeds tax-free. Indexation benefits are provided if SGBs are transferred before maturity. What Are Sovereign Gold Bonds? 6 / 7 SGBs are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. They serve as a paper and digital alternative to physical gold, with cash-based issuance and redemption. Advantages Over Physical Gold 7 / 7 SGBs protect the quantity of gold purchased, offer returns linked to the current market price at redemption, avoid storage risk/costs, and have no concerns about making charges or purity, unlike gold jewelry. Bonds can be held in demat or RBI records, reducing risk of loss.
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Business Standard
2 days ago
- Business
- Business Standard
SGB 2017 investors set for 250% returns: Here's all you need to know
Investors in the Sovereign Gold Bond (SGB) 2017-18 Series II, issued in July 2017, are set to receive the maturity proceeds on July 28, 2025. According to the Reserve Bank of India (RBI), the final redemption price has been fixed at Rs 9,924 per gram, delivering more than 250 per cent returns for those who stayed invested for the full eight-year tenure. How the final payout was calculated According to the RBI's release dated July 25, 2025, the redemption price has been derived based on the simple average of closing gold prices of 999 purity, published by the India Bullion and Jewellers Association (IBJA), over three working days in the preceding week (July 21–25). This calculation method is consistent with SGB scheme norms and ensures alignment with prevailing market prices. From Rs 2,830 to Rs 9,924: A solid gold gain The issue price of the SGB 2017-18 Series II was Rs 2,830 per gram (excluding the Rs 50 online discount). With the final redemption value now at Rs 9,924 per gram, investors have gained Rs 7,094 per gram over eight years, translating to an absolute return of 250.67 per cent, excluding interest income. In addition to the price appreciation, investors also earned 2.5 per cent annual simple interest, paid semi-annually, making the total effective yield even higher. Redemption process: What investors should know SGBs have a fixed maturity of eight years, with an early exit option after five years. One month prior to maturity, investors receive an intimation from their bank or broker. The proceeds are automatically credited to the registered bank account on the redemption date. It is important to update any change in bank details or email ID with the relevant intermediary before the maturity date to ensure a smooth payout. What are Sovereign Gold Bonds? SGBs are government securities issued by the RBI on behalf of the Government of India. Denominated in grams of gold, they offer a way to invest in gold without the costs and risks of holding it physically. They are particularly attractive due to: -Capital gains tax exemption if held till maturity -Backing by the sovereign guarantee
New Indian Express
3 days ago
- Business
- New Indian Express
Best ways to invest in gold that hit record highs in H1
Gold, which has never ceased to be the safe-haven asset so far, has gained 26% in the first half of 2025 becoming one of the top-performing major asset classes. The precious metal has scaled 26 new all-time highs during this period in global markets—including once crossing the sensitive Rs 1 lakh/10 grams mark in the domestic markets when the metal crossed $3,500/ounce-mark in the third week of April. This 26 new life-time highs came in after breaking through a 40-new-record streaks in 2024 when it had rallied 24% over a 22% rally in the previous year. What makes the metal so alluring to investors? There are many a reason, with the shining allure it has for women as a jewellery (our households are sitting over close to 26,000 tonnes of gold in jewellery alone) and its ready fungibility/encashability when in need of ready cash being the top reasons for its allurement. Let's look at some of the best ways to invest in this metal, even though investment experts recommend allocating only a small portion (5–10%) of your portfolio to precious metals. According to the World Gold Council, a combination of a weaker US dollar, range-bound interest rates and a highly uncertain geo-economic environment has resulted in strong investment demand for gold. Another equally important driver is the continuing central bank demands led by the Reserve Bank and the central bank of China among others. The council sees at least 5% more spike in prices during the course of the year and 10-15% more if current volatile economic conditions deteriorate further exacerbating stagflationary pressures—that's the metal reaching $3,840/ounce by end December and translating into an annual return of 40%. But many Wall Street watchers have predicted the metal hitting the $4,000/ounce mark by December. Experts recommend allocating only a small portion, say 5–10% of your investment portfolio to precious metals, including silver and the following are the best ways to take exposure to this metal. The easiest way is investing in sovereign gold bonds (SGBs) launched in 2015, but since last year the SGBs have been discontinued. Starting 2015, the RBI had launched 67 SGB tranches-- each being an eight-year instrument with a five-year lock-in--issuing 14.7 crore units. They were listed and traded in the cash segment of the BSE and the NSE and investors could buy and sell them through demat accounts. Gold Exchange Traded Funds (ETFs) Given that no new SGBs are being issued, the best option available to own non-physical gold is to go in for gold ETFs which track the domestic physical prices of the metal. Each gold ETF unit represents the physical gold and is based on gold prices and invest in physical bullion. One gold ETF unit equals 1 gram of gold, backed by high-purity physical metal. Why ETFs? Because they are safe and have higher liquidity as they are listed and are traded every day. Though, there are brokerage charges they are way less than the making charges on physical jewellery. The expense ratio in gold ETFs is also lower than that of gold MFs. On the negative side, since ETFs track the price of gold, they are subject to volatility. To invest in an ETF, one needs to have a demat account. There are entry and exit loads and the investor has to pay brokerage every time. Gold Mutual Funds Gold mutual funds are open-ended funds that invest in the units of a gold ETF with the ultimate goal of creating wealth using the potential of gold as a commodity. Gold MF units are priced differently-- in the form of net asset value disclosed at the end of the trading session—as opposed to gold ETFs which are linked to physical prices. Since gold MFs are actively managed, they have the potential to outperform the metal price over time. They also offer the convenience of investing through a fund house. On the negatives, gold MFs take a higher expense ratio than ETFs, typically around 1-2% apart from the risk of underperformance-- the return can be lower than gold price over time. In comparison to gold ETFs, gold MFs have low minimum investment requirements, making them more accessible for retail investors. Also, you don't need a demat account to invest in this form of gold.
Time of India
5 days ago
- Business
- Time of India
New SGB issuance: When will government issue next tranche of sovereign gold bonds? Here is the answer
Questions on Sovereign Gold Bond scheme Academy Empower your mind, elevate your skills Whether Sovereign Gold Bonds (SGBs) scheme is a failure? If not, by when Government is going to release the next tranches of SGBs for the public? How does the government decide when to release new SGB tranches? Has the geopolitical situation affected SGB issuance? When will the next SGB tranche be released? FAQS on SGB What is a Sovereign Gold Bond (SGB)? The Ministry of Finance responded to questions about the effectiveness and future of the Sovereign Gold Bond (SGB) scheme, highlighting its success since its inception in 2015 and explaining the impact of global geopolitical tensions on issuing new tranches of last tranche of SGBs - SGB 2023-24 Series IV was issued in February Wealth Online tells you in detail the questions asked by Members of Parliament on the Sovereign Gold Bond scheme and the government's response on the Ashokrao Patil, Member of Parliament, Rajya Sabha, asked the following questions on SGBs from the government:Whether Sovereign Gold Bonds (SGBs) scheme is a failure; and if not, by when is the Government going to release the next tranches of SGBs for the public?Pankaj Chaudhary gave a written reply in Rajya Sabha to the question raised on SGBs:'The Sovereign Gold Bonds (SGB) scheme was introduced in 2015 to help reduce the demand for physical gold. As of March 31, 2025, the SGB scheme garnered subscription of about 146.96 ton of gold amounting to about Rs 72,275 crore through 67 different tranches. Against this, 18.81 ton of SGB subscription has already been redeemed till June 15, 2025.'' The Government of India mobilizes resources through various modes including Government Securities, Treasury Bills, Sovereign Gold Bonds, etc. A decision on the mode of mobilizing resources is taken after due consideration of the relative costs to the Government. The recent global geopolitical unrest has impacted gold prices significantly, increasing the cost of borrowing through SGBs. The Government's endeavor is to minimize the cost of borrowings and hence it is imperative for a prudent debt management strategy to carefully consider the above factor while deciding on offering new tranches of Sovereign Gold Bonds.'The decision to issue new SGBs depends on the overall cost of borrowing for the government. It is evaluated alongside other instruments like Government Securities and Treasury Bills to ensure a prudent debt management Global geopolitical unrest has driven up gold prices, which in turn has increased the cost of borrowing via SGBs. This is a key factor currently influencing the government's decision on whether to launch new SGB the government has not announced specific dates for the next tranche, it stated in Parliament that any such decision will depend on market conditions, particularly gold price trends and borrowing are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on nominal value of Gold Bonds shall be in Indian rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription matures after 8 years and premature withdrawal of SGB redemption is allowed from fifth year. One month before maturity, the investor will be informed of the bond's upcoming maturity date. On the date of maturity, the maturity proceeds will be credited to the bank account specified in the record. If there are any changes to any details, such as account numbers or email addresses, the investor must notify the bank.
News18
22-07-2025
- Business
- News18
Sovereign Gold Bond Delivers 205% Return: RBI Announces Redemption Price Of This SGB
Last Updated: The Reserve Bank of India (RBI) has declared the premature redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series-V The Reserve Bank of India (RBI) has declared the premature redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series-V, which is due for early redemption on Tuesday, July 22, 2025. While SGBs have a maturity period of eight years, investors are allowed to redeem them prematurely after five years from the date of issuance, only on coupon payment dates. According to the RBI press release dated July 21, 2025, the redemption price is determined using the simple average of the closing gold prices (999 purity) for the previous three business days prior to the redemption date. These prices are published by the India Bullion and Jewellers Association Ltd (IBJA). What Is the Redemption Price for SGB 2018-19 Series-V? The redemption price for the SGB 2018-19 Series-V, due on July 22, 2025, has been set at ₹9,820 per gram/unit, based on the gold price averages of July 17, 18, and 21, 2025. Returns on Premature Redemption The SGB 2018-19 Series-V was originally issued in January 2019 at a price of Rs 3,214 per gram. Therefore, the absolute gain on premature redemption is: Rs 9,820 (current redemption price) – Rs 3,214 (issue price) = Rs 6,606 per gram SGBs offer a fixed interest rate of 2.50% per annum on the initial investment amount. This interest is credited semi-annually to the investor's bank account. The final interest payment is made along with the principal at maturity or during premature redemption. What Are Sovereign Gold Bonds (SGBs)? SGBs are government securities denominated in grams of gold and act as a substitute for physical gold. Investors pay the issue price in cash and receive the redemption amount in cash. These bonds are issued by the RBI on behalf of the Government of India. Previous Redemption Announcement The RBI had earlier announced the redemption price for the SGB 2018-19 Series-IV, which was due for premature redemption on July 14, 2025. Frequently Asked Questions (FAQs) on Sovereign Gold Bonds Can I redeem my gold bond anytime? No. While the bond has an 8-year maturity, early redemption is allowed only after 5 years from the issue date and only on coupon payment dates. The bonds are tradable on stock exchanges if held in demat form and can be transferred to eligible investors. How can I exit my SGB investment prematurely? Investors who wish to redeem early must approach the bank, SHCIL, Post Office, or agent 30 days before the coupon payment date. The request must be submitted at least one day prior to the coupon date. Proceeds will be credited to the investor's bank account registered at the time of bond purchase. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
