If you have invested in Sovereign Gold Bonds (SGB), there is good news for you. The Reserve Bank of India (RBI) has fixed the premature redemption price of SGB 2021-22 Series VII. Investors of this series will be able to redeem their gold bonds early from November 2, 2026. RBI has fixed the price per unit for this at Rs 14,167.
The online bonds of this series were issued at a price of Rs 4,715 per gram. This account will give investors a return of around 200.47 per cent net of interest, i.e. if an investor had invested Rs 1 lakh in this series at the time of launch, his investment has now grown to a little over Rs 3 lakh including the initial amount and returns. Let it be known that the interest received in this is not attached.
According to RBI, SGB 2021-22 Series VII was issued on 2 November 2021. Investors of this series can opt for premature redemption from 2 November 2026. As per RBI rules, Gold Bonds are allowed to redeem prematurely after completion of 5 years from the date of issue. This facility is availed on the same date, on which the interest payment is due on the bond.
According to RBI, the average closing price of last three business days of 999 purity gold is used to determine the premature redemption price of gold bonds. These prices are issued by the India Bullion and Jewelers Association (IBJA).
For SGB 2021-22 Series VII, the simple average of closing gold prices on 28 October, 29 October and 30 October 2026 has been calculated. On the same basis, RBI has fixed the price for premature redemption on 2 November 2026 at Rs 14,167 per unit.
The online bonds of SGB 2021-22 Series VII were issued at a price of Rs 4,715 per gram. Now its premature redemption price has been fixed at Rs 14,167 per unit. In this way, the investors are getting a profit of Rs 9,452 per gram. In percentage terms this is an absolute return of around 200.47%. This calculation does not include interest income. Now for the investors who bought the bonds of this series offline, the issue price was Rs 4,765 per gram. Investors got a discount of Rs 50 per gram on online purchases.
According to RBI, Sovereign Gold Bonds are securities issued by the government, the price of which is determined in terms of grams of gold. These bonds are presented as an alternative to holding physical gold. These bonds are issued by the Reserve Bank of India on behalf of the central government. Investors have to pay the fixed issue price of the bond while buying it. Payments are made at the face value of the bond at maturity.
Investors in Sovereign Gold Bonds earn interest at a fixed rate of 2.50% per annum on the initial investment amount. However, SGBs issued in the financial year 2015-16 carried an interest of 2.75% per annum. Interest is paid every 6 months to the investor’s bank account. The last interest and principal investment amount are paid together at the maturity of the bond.
Gold Price Fall Before Diwali 2026: Big drop in gold price before Diwali? Big signal for Dhanteras shoppers!
. Source
