Date: 23-apr-2025 | By: Nuztrend Team
April 23, 2025 — Investors who bought Sovereign Gold Bonds (SGBs) in 2017 are celebrating as gold prices reach an all-time high of ₹1 lakh per 10 grams. With this historic rally, some early SGB holders are realizing tax-free returns of up to 221%—a rare feat in traditional investment avenues.
Investors who purchased the 2017-18 Series III SGB, issued on October 16, 2017, at a price of ₹2,964 per gram, were eligible for premature redemption on April 16, 2025. The Reserve Bank of India (RBI) set the redemption price at ₹9,221 per unit, marking a stunning 211% gain over 7.5 years. This return doesn’t even include the semi-annual 2.5% interest they received, which pushes total gains closer to 221%.
Several global and domestic factors are fueling this gold rally:
Gold prices have appreciated by over 33% in the past year alone, outpacing major equity indices and mutual funds.
What makes SGBs so attractive now isn't just the return—it’s the tax treatment:
These features have helped solidify SGBs as one of the smartest long-term plays in the precious metals market.
As more series near their 8-year maturity mark, experts suggest evaluating based on financial goals:
Analysts recommend a 10–15% allocation in gold (including SGBs) as part of a diversified portfolio to hedge against inflation and volatility.
In a world where equity markets are often unpredictable, Sovereign Gold Bonds have proven to be a slow-burn success story—quietly compounding wealth with safety and simplicity. As gold shines brighter than ever in 2025, long-term SGB investors are finally seeing the rewards of patience in glittering returns.
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