The Reserve Bank of India (RBI) has announced the premature redemption price of Sovereign Gold Bond (SGB) 2019-20 Series-X.
The subscription dates for this series were 2 to 6 March 2020 and the bond was issued on 11 March 2020. At that time the price of these bonds was fixed at Rs 4,260 per gram. Now the RBI has fixed its redemption price at Rs 10,905 per gram. That is, investors have got a return of about 156% or Rs 6,645 per gram. It is worth noting that this return is different from the 2.5% annual interest received on them.
When and how does premature redemption happen?
The total tenure of SGB is 8 years, but investors can redeem them prematurely after the fifth year. This facility is available only on the fixed dates of interest payment, i.e. twice every six months.
The redemption price is calculated under RBI rules. For this, the average price of 999 purity gold of the last three business days published by the India Bullion and Jewelers Association (IBJA) is taken. This time the price has been calculated on the basis of closing prices of 8, 9 and 10 September 2025.
Which SGB series have given great returns so far
SGBs are considered a safe instrument for investors as they are fully backed by the government. This scheme was first started in November 2017 and so far 67 tranches have come.
In the last few months, RBI has announced the redemption price of many SGBs, which have given excellent returns to the investors. For example:
| SGB Series | Issue Year | Issue Price (₹/gram) | Redemption Price (₹/gram) | Redemption Date | Return (%) |
| 2017-18 Series II | 2017 | 2,830 | 9,924 | 28 July 2025 | 250.67% |
| 2018-19 Series V | 2019 | 3,214 | 9,820 | 22 July 2025 | 205% |
| 2019-20 Series III | 2,019 | 3,499 | 9,991 | 14 August 2025 | 185% |
| 2019-20 Series IX | 2,019 | 4,070 | 10,070 | 11 August 2025 | 147% |
| 2020-21 Series V | 2,020 | 5,334 | 10,070 | 11 August 2025 | 89% |
Now there is only one more SGB remaining for the April-September 2025 period – 2019-20 Series-IV, which will open for premature redemption on 17 September 2025.
Rising gold prices and the future of SGB
The year 2025 has seen a steady rise in gold prices. Investors have considered gold as a safe haven amid geopolitical tensions and global market uncertainties. Due to this, gold has risen by more than 30% so far this year.
However, the government had announced the closure of the SGB scheme in the Union Budget 2025. Until it becomes cost-effective for the government, new bond issues are unlikely.