Sovereign Gold Bond investors get double profit, RBI declares premature redemption price

Sovereign Gold Bond Scheme: The Reserve Bank of India (RBI) has announced the premature redemption price of the Sovereign Gold Bond Scheme issued on 12 February 2019 for Series 6 of 2018-19 (SGB 2018-19 Series VI – Issue date February 12, 2019). The redemption of sovereign gold bonds of this series will be at a price of Rs 6927 per gram. Investors who invested in this gold bond had bought gold bonds at a price of Rs 3326 per gram. Investors are going to get a return of 108 percent on their investment.

Premature redemption of Sovereign Gold Bond on August 12

The Reserve Bank of India issued a press release on 9 August 2024 stating that the Sovereign Gold Bond Series 6 of 2018-19 was issued on 12 February 2019. As per RBI rules, the option of premature redemption is given to investors from the date on which interest is paid five years after the issuance of the Sovereign Gold Bond. The premature redemption of Sovereign Gold Bond of this series is to take place on Monday, 12 August 2024.

Fixed on the average price of gold for 3 days

RBI said that the redemption price of sovereign gold bonds is determined on the basis of the average closing price of 999 purity gold during the last three trading sessions of the week preceding the redemption date between Wednesday and Friday. India Bullion and Jewelers Association Ltd publishes it. Under this, the redemption price of Sovereign Gold Bond of Series 6 of 2018-19 on 12 August 2024 has been fixed at Rs 6927 per gram, which is the average of the closing price of gold during the three days from 7 August to 9 August 2024.

Decline in investor returns

In the budget presented on July 23, 2024 for the financial year 2024-25, the custom duty on gold was reduced from 15 percent to 6 percent, which reduced the prices of gold. This has reduced the returns received by investors investing in sovereign gold bonds. Last week also, RBI had announced the redemption of Sovereign Gold Bond of 2016-17 Series I (SGB 2016 -17 Series I) at a price of Rs 6938 per gram.

Read this also

Bank account holders will soon be able to give names of 4 nominees in their accounts, provision in the Banking Law Amendment Bill presented in Lok Sabha