Sovereign Gold Bond (SGB)

Sovereign Gold Bond 2017-18 Series X Delivers Over 3x Returns—What Next If You Missed Redemption?

by

Investors who purchased the Sovereign Gold Bond (SGB) 2017-18 Series X are sitting on a golden windfall. As of June 4, 2025, the Reserve Bank of

Sovereign Gold Bond (SGB)
India (RBI) closed the window for premature redemption of this particular tranche. Investors who opted to redeem received ₹9,630 per unit, according to the India Bullion and Jewellers Association (IBJA), which calculated the price based on the average gold price of 999 purity. This marks a staggering gain compared to the issue price of ₹2,961 per gram when the bond was launched in December 2017.

Over 225% Return in Less Than 8 Years

For long-term investors, this translates into a return of over 225%, purely from the appreciation in gold prices. When you add the 2.5% annual interest paid semi-annually on the face value of the bond, the real return climbs even higher. This makes SGBs one of the most successful and secure government-backed investment schemes in recent years.

Missed the Redemption Deadline? Here’s What You Can Do

If you didn’t redeem your SGBs during the June 4 window, don’t panic. Under RBI rules, premature redemption is allowed only after the 5th year from issuance, and only on interest payout dates. Since the bonds pay interest every six months, you will get another opportunity to redeem them on the next interest payment date.

Alternatively, you can hold the bond till its maturity date on December 4, 2025. Holding till maturity means you continue to earn interest while benefiting from any further appreciation in gold prices. At maturity, the redemption amount is automatically credited to your linked bank account along with the final interest payout. As long as your PAN and bank details are up-to-date in your demat or bank records, no paperwork or action is needed on your part.

No More New SGBs Will Be Issued

In a major policy shift, the Union Budget 2025 announced that the government will discontinue fresh issuances of Sovereign Gold Bonds. While this shuts the door for new investors, existing bondholders will continue to receive full benefits—including interest payments and redemption proceeds—on schedule.

This means that SGBs have now become an exclusive asset class, with their value potentially rising in the secondary market as new issuances dry up. Investors who already hold them are advised to track maturity timelines and ensure account details are current to avoid delays in payouts.

A Safe and Profitable Gold Investment

The SGB scheme has proven to be a highly rewarding, low-risk investment backed by the Government of India. For those who invested with a long-term outlook, the bond has not only preserved wealth but also delivered market-beating returns. And with no capital gains tax on redemption at maturity, it remains a tax-efficient option.

For investors still holding SGBs, staying invested until maturity may be the wisest decision. With gold prices remaining robust and interest accruing, this financial instrument has delivered exactly what it promised—a golden opportunity for the informed investor.

Author Profile

Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.