Rs 1 lakh gold investment becomes Rs 3.28 lakh in 5 years: 228% return plus interest
The Reserve Bank of India (RBI) has announced the premature redemption price for the SGB 2021-22 Series VI, which was issued on September 7, 2021. In a statement, the RBI has said that investors in this gold bond series will be able to exercise the premature redemption option from September 7, 2026.
Investors in Sovereign Gold Bonds (SGBs) are seeing significant returns, even as gold prices have corrected in recent times. The Reserve Bank of India (RBI) recently announced that investors holding the SGB 2021-22 Series VI can now redeem their bonds prematurely, starting from September 7, 2026.
Sovereign Gold Bonds are government-backed securities whose value is linked to the price of gold. Investors purchase these bonds in grams of gold, and the RBI acts as the issuer on behalf of the Indian government. The bonds carry a fixed annual interest rate of 2.50% (2.75% for bonds issued from FY 2015-16), which is paid twice a year into the investor's bank account. At maturity, the principal amount is also returned to the investor.
The premature redemption price for the SGB 2021-22 Series VI is Rs 15,334 per gram, based on the simple average of gold's closing prices for September 2, 3, and 4, 2026. This price calculation results in an approximate 228% absolute return on an investment of Rs 1 lakh, reaching nearly Rs 3.28 lakh by the redemption date – a figure not including the interest earned.
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