Gold Gains: Sovereign Bonds Yield Significant Returns

The Reserve Bank announced a redemption price of Rs 12,801 per unit for two series of sovereign gold bonds. This initiative aimed to deter Indians from buying physical gold by offering returns, with one series initially priced at Rs 2,954 per unit showing impressive gains.

The Reserve Bank of India has announced a noteworthy redemption price of Rs 12,801 per unit for two sovereign gold bond series, marking significant returns for investors.

Holders of the SGB 2017-18 Series-XI, initially investing at Rs 2,954 per unit, will receive this substantial amount as their final redemption payout. These investors have benefited from a 2.5% annual interest since the bond's issuance.

This scheme, designed to curb substantial physical gold imports by offering financial alternatives, has delivered impressive gains in light of recent gold price rallies. Notably, the same redemption price applies to the 2019-20 Series I, maturing on December 11, 2025. Prices were calculated based on the average of the previous three days' gold closing prices, underscoring the precious metal's robust market performance.

(With inputs from agencies.)