Sovereign Gold Bond 2016-17 Series III Delivers Over 159% Profit at Maturity: Check Final Redemption Date

Investors holding the Sovereign Gold Bond (SGB) 2016-17 Series III, issued on November 17, 2016, will see the final redemption of their bonds on November 16, 2024. The redemption price is set at ₹7,788 per gram. Investors who bought this SGB in 2016 at the original issue price of ₹3,007 per gram will realize a profit of ₹4,781 per gram upon redemption.

This represents a return on their investment of approximately 159% over an eight-year period.

This calculation excludes the annual interest of 2.50% paid semiannually during the term of the bond.

How the redemption price is calculated

The RBI fixes the final redemption price based on the average closing price of 999-pure gold of the previous week, as reported by the India Bullion and Jewelers Association Ltd. (IBJA).

For this tranche, the average gold price between November 4 and November 8, 2024 determined the rate of ₹7,788.

Steps to redeem

The redemption proceeds will be automatically credited to the bank accounts linked to the demat accounts of bondholders. Investors do not need to take any additional steps if their bank and debit details are up to date.

However, they must verify the account details and ensure there are no discrepancies to avoid delays.

If investors prefer not to redeem, they can also trade the bonds on the stock exchanges, although the market price will vary depending on the gold price and demand.

Benefits of investing in SGB

Invest in Gold government bonds offers several advantages:

Tax Benefits: The capital gains from SGBs are tax exempt upon redemption, adding to the net return for investors.

Security and Convenience: SGBs provide a secure and convenient way to investing in gold without the hassle that comes with physical gold.

Government support: As government bonds, they offer an extra layer of security and stability.