This gold scheme of RBI made you rich, doubled your money in 5 years
The Reserve Bank of India has announced an early redemption price of Rs 10,610 per unit for Sovereign Gold Bonds (SGB 2020-21 Series-VI). The special thing is that 5 years ago these gold bonds were issued at Rs 5,117 per gram. This means that this bond has given more than 107 percent returns so far.
Business News: Reserve Bank of India's Sovereign Gold Bond scheme has given investors more than double their returns in 5 years. In fact, the Reserve Bank of India (RBI) has announced the premature redemption price of Series-VI of Sovereign Gold Bond on 8 September 2020. RBI said in a statement that premature redemption of this Sovereign Gold Bond can be done till 6 September 2025.
The tenure of Sovereign Gold Bond (SGB) is eight years. However, Sovereign Gold Bond can be redeemed prematurely after five years. The special thing is that this series of Sovereign Gold Bond has more than doubled the money of investors in five years; let us also give you detailed information about it.
Sovereign Gold Bond (SGB) Scheme Details
RBI manages this scheme on behalf of the Government of India. In this, there is an option to hold paper gold instead of physical gold. For which a demat account is opened. The special thing is that under this scheme, investors also get a fixed return of 2.5 percent every year. You can exit the scheme before maturity and after 5 years. The special thing is that these bonds are transferable and loans can also be obtained through them.
How is the SGB redemption price calculated?
According to the RBI press release issued on September 5, 2025, the redemption price of SGB will be based on the simple average of the closing price of 999 purity gold of the last three business days from the date of redemption, as published by the India Bullion and Jewellers Association Limited (IBJA).
What is the redemption price of SGB 2020-21 Series-VI?
According to the press release, the redemption price for premature redemption of SGB 2020-21 Series-VI payable on September 6, 2025, which is based on the simple average of the closing gold price for three working days, i.e., September 3, September 4 and September 5, 2025, will be Rs. 10,610 per unit of SGB. SGB 2020-21 Series-VI was issued in August 2020 at a rate of Rs. 5,117 per gram. This will give a total simple return of approximately 107.35 percent on the date of premature redemption.
Understanding Benefits of Gold Investment
The total return comes to Rs 10,610 - Rs 5,117 = Rs 5,493 (excluding interest). In percentage terms, it is Rs 5,493 ÷ Rs 5,117 × 100 = 107.35 percent. If we talk about interest, SGBs provide interest at the rate of 2.50 percent (fixed rate) per annum on the initial investment amount. The interest amount is credited to the SGB investor's bank account every 6 months. The last installment of interest is payable on maturity along with the principal amount.
