RBI has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2019–20 Series I, and the numbers are eye-popping. This tranche—issued in June 2019—has now completed its five-year lock-in, and those opting for early exit on December 11, 2025 will walk away with returns most investments can only dream of.

The RBI has fixed the redemption price at Rs 12,801 per unit, based on the simple average of 999-purity gold prices published by IBJA for December 8, 9 and 10.

This is a huge leap from the issue price of Rs 3,119 per unit, giving investors a gain of Rs 9,682 per unit—a stunning return of over 210% in just five and a half years, excluding the 2.5% annual interest payouts.

To understand better, a Rs 1 lakh investment in this SGB would have fetched about 32 units in 2019

See Full Page