The Sovereign Gold Bond (SGB) 2017-18 Series-VIII were redeemed on Thursday, November 20, completing its eight-year term with substantial gains for investors. According to the final price announced by the Reserve Bank of India, the bond issued on November 20, 2017, at Rs 2,911 per gram, will be redeemed at Rs 12,300 per unit.
Investors see over 320% returns
The final payout to investors reflects a return of more than 320% over eight years. This is excluding the additional interest earned during the tenure. The redemption rate has been calculated based on the simple average of the closing prices of 999-purity gold, published by the India Bullion and Jewellers Association (IBJA), for November 17, 18 and 19, 2025.
Under the original terms notified on October 6, 2017, the bonds carry a 2.5% annual interest rate, paid semi-annually and are redeemable at the end of eight years. The SGB scheme, launched by the government, provides a way for investors to gain exposure to gold prices without holding the metal physically. Redemption proceeds are automatically credited to investors’ bank or demat accounts.
Successful scheme
The government has continued to actively mobilise savings through the SGB route. As of March 31, 2025, 146.96 tonnes of gold worth Rs 72,275 crore have been raised across 67 tranches, according to Minister of State for Finance Pankaj Chaudhary. Of this, 18.81 tonnes had been redeemed by investors as of June 15, 2025.
