The Reserve Bank of India (RBI) has set the final redemption price for the Sovereign Gold Bonds (SGB) 2018-19 Series II at ₹14,425 per gram, marking the end of their eight-year tenure on October 23, 2026. These bonds, issued by the RBI on behalf of the Government of India, provide investors with exposure to gold prices without the need for physical ownership.
The redemption price was determined using the simple average of the closing price of 999-purity gold over the three business days preceding October 23, 2026, as reported by the India Bullion and Jewellers Association Ltd (IBJA). Investors who subscribed offline will see a capital gain of ₹11,279 per gram, while those who subscribed online with a digital discount will earn ₹11,329 per gram. This translates to gains of approximately 359% and 366%, respectively, excluding interest and taxes.
Investors also earned interest at a fixed rate of 2.50% per annum on the nominal value of the bond, paid half-yearly. For a 10-gram investment, offline subscribers would have received an estimated ₹6,292 in interest over eight years, while online subscribers would have earned ₹6,192.
The SGB 2018-19 Series II was issued on October 23, 2018, with an issue price of ₹3,146 per gram for offline subscriptions and ₹3,096 per gram for online subscribers who received a ₹50-per-gram discount.