The investors of the Sovereign Gold Bond 2019-20 Series VI will get handsome returns because the Reserve Bank of India has announced the premature redemption price for October 30, 2026, at ₹14,213 per gram. It is an appreciation of nearly 270.6% from the original issue price of ₹3,835 per gram without considering the interest earned from the investment.
The Sovereign Gold Bond 2019-20 Series VI was initially released in the market on October 30, 2019, at ₹3,835 per gram. The investors buying the sovereign gold bond through online transactions and paying digitally got a discount of ₹50 per gram, which lowered their investment amount to ₹3,785 per gram. The latest redemption price will allow investors to make profits of ₹10,378 per gram if they invested at the original issue price.
The Reserve Bank of India has determined the redemption price by taking into consideration the simple average of the closing prices of 999 purity gold for the last three business days of October 27, 28 and 29, 2026. These prices were announced by the India Bullion and Jewellers Association Ltd (IBJA).
In addition to the gold appreciation, investors get 2.5% fixed interest on the invested amount each year. The interest gets paid semi-annualy making it a good source of regular income.
The SGB scheme allows for early redemption after 5 years from the date of issue. Even though the bonds have been issued for a tenure of 8 years investors can redeem them early on the scheduled interest payment dates.
The recent redemption highlights how well gold has performed in the last seven years. With a combination of appreciation and fixed interest, this series of SGBs has become a great opportunity to grow wealth.
