Investors in Sovereign Gold Bond 2016-17 Series IV reap 193% returns as RBI declares final redemption price of ₹8,634 per gram
The Reserve Bank of India (RBI) declared the final redemption price of Sovereign Gold Bond (SGB) 2016-17 Series IV to be Rs 8,634 per gram. The redemption price of Rs 8,634 per gram represents the bond’s total value, issued initially at Rs 2,943 per gram in March 2017. Investors who purchased Series 4 of SGB during 2016-17 achieved a superb 193% profit on their investments, which did not include interest. RBIs determination of the price for sovereign gold bonds in 2025 followed the average gold price closing on March 2025 for three consecutive days.
SGB Redemption Process and Price Calculation
An average computation of closing gold prices from March 11 to March 12 and March 13 in 2025 led to the Rs 8,634 per gram redemption figure. Due to the March 14, 2025 holiday, the conclusion price was excluded from the calculation of the mathematical average. The final bond assessment at Rs 8,634 per gram incorporates increased gold market value alongside accumulated interest payments from the bond’s complete term duration.
Muthoot Finance will deliver a redemption payment of Rs 8,634 per gram to investor bank accounts during March 2025. Before maturity, the Reserve Bank of India issued statements to investors about redemptions to allow them adequate time to confirm accurate bank account information.
Benefits of Investing in Sovereign Gold Bonds
SGBs deliver many advantages to investors who choose them as financial instruments. The profitable aspect of investing in gold produces substantial capital gains that yielded 193% profit for Series IV bondholders. The annual interest SGBs pay is 2.50%, while investors receive two equal payment distributions through semi-annual distributions.
The bonds offer tax exemption for capital gains only when investors hold them until maturity, but they must pay taxes on interest earnings received along the way. SGBs gain two advantages that make them appealing investments because they combine capital growth with regular interest payments.
Investors Enjoy Tax Exemptions on SGB Gains
Sovereign Gold Bonds exempt investors from capital gains tax when holding the bonds until maturity. The tax advantage serves investors who keep bonds until maturity exceptionally well because it coincides with increased gold prices. SGBs are a convenient method for investors to enjoy gold investment benefits without acquiring physical elements of gold.
The RBI supports gold investing through Sovereign Gold Bonds, thus establishing these bonds as a central asset to reach financial inclusion and protect investors better than holding actual gold.
