Sovereign Gold Bond 2017-18 Series-III Delivers 338% Return on Redemption

On October 16, 2025, investors will get ₹12,567 per unit, or about 338% absolute returns on the issue price.

When the Sovereign Gold Bond (SGB) 2017-18 Series-III matures on October 16, 2025, the Reserve Bank of India (RBI) will reveal the final redemption price. On the redemption date, investors would get Rs 12,567 for every gram of gold, the RBI said in an official release. In order to determine this price, the India Bullion and Jewellers Association (IBJA) provided statistics on the average closing price of gold (999 pure) for October 13, 14, and 15, 2025.

On October 16, 2017, the bonds were first offered for sale at a price of Rs 2,866 per gram. With an absolute return of over 338% over eight years, investors would profit by around Rs 9,701 per gram. And it is not including the 2.5% yearly interest that investors have consistently received.

What is the plan for Sovereign Gold Bonds?

In November 2025, the Indian government launched the SGB Scheme as a substitute to encourage gold ownership. For and on behalf of the Center, the RBI issued the bonds. Investors who purchased gold-denominated bonds had two benefits: a set yearly interest rate of 2.5 percent on the issue price and capital growth correlated with gold prices. The main objectives of the plan were to decrease India’s reliance on imported physical gold, stop hoarding, and direct family savings into financial assets.

Although the bonds have a set eight-year tenure, investors are free to withdraw at any time after the first five years of interest payments. It is also possible to trade SGBs on stock markets, transfer them to other people, or use them as loan collateral.

How will redemption operate?

A month or so before to the bond’s maturity, investors get a reminder. Their registered bank account will automatically receive the funds on the maturity date. Anyone who has updated their email address or bank information must do so in advance with their bank, SHCIL, or post office.

Investors in this SGB series stand to benefit from one of the most lucrative payouts since the scheme’s inception, as gold prices are at all-time highs.

What is Sovereign Gold Bonds’ tax treatment?

Interest on SGBs is taxed in accordance with Section 43 of the Income-tax Act of 1961. An person does not have to pay capital gains tax when they redeem these bonds. The indexation advantages will apply to any capital gains that arise from the transfer of the bonds on the exchange.

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