Sovereign Gold Bond Investors Rejoice As Gold Price Surge Pushes SGB Returns to Nearly 200 (Image Source: Canva)
The Series IV bonds from 2016-17, which were issued in February 2017 at Rs 2,943 per gram, will now be redeemed at Rs 8,624 per gram, providing a remarkable 193% return. Likewise, investors in the 2019-20 Series IV, launched in September 2019 at the identical price, may redeem the bonds early at Rs 8,634 per gram.
Premature exit at this stage can prove beneficial since gold prices are witnessing a surge. Gold prices are rising worldwide, surpassing $3,000 per troy ounce. On the MCX, gold has increased by 14% this year, bringing an approximate rise of Rs 11,000 to its value.
In India, the cost has hit a record high of Rs 88,310 for 10 grams.
Redemption Price Calculation
How To Redeem The Bonds Prematurely?
If one wishes to redeem their premature bonds, they must not fail to submit a request 30 days prior to the interest payment date at a SHCIL office, post office, designated bank or agent. The request should be submitted at least a day prior to March 17 for successful processing. Upon approval, the funds will be deposited directly into the investor’s bank account associated with the SGB application.