Sovereign Gold Bonds: Many investors now prefer to invest in gold because gold gives good returns in the long term. Gold has also done very well in the last few years. Sovereign Gold Bonds can be a good option for investors who want to invest in gold. According to news reports, investors who bought some sovereign gold bonds a few years ago earned attractive returns. Which Sovereign Gold Bonds gave the best returns? Check below:
Sovereign Gold Bond 2016-17 Gives Huge Returns
According to sources, investors who bought the Sovereign Gold Bond (SGB) Series IV of 2016-17 have made huge gains. When the bond was issued in March 2015, the price of 1 gram of gold was ₹2,943. Today, the price of that gold has risen to ₹8,624 per gram. This means the wealth of investors has almost tripled. In other words, they earned an attractive return of 193% on the issue price.
The last date to redeem this bond is March 17, 2025, which is next Monday. Many investors have earned amazing returns by investing in this SGB.
The redemption price of a Sovereign Gold Bond is based on the weekly average of the closing gold price (999 purity) from Monday to Friday. The India Bullion and Jewellers Association (IBJA) publishes this price in the week before the redemption. For this bond, the redemption price is calculated using the average closing price of gold from March 10-13, 2025.
What is a Sovereign Gold Bond?
A Sovereign Gold Bond is a government security denominated in grams of gold. It is one of the best ways to invest in real gold. The Reserve Bank of India (RBI) issues these bonds on behalf of the Central Government. The Central Government first launched SGBs in 2015. Experts say SGBs are a better alternative to holding gold at home because there is no risk or extra cost of storing physical gold.