The final redemption date for Sovereign Gold Bond 2018-19 Series-I-Issue is today (May 4, 2026). According to RBI guidelines, the gold bond shall be repayable on the expiration of eight years from the date of issue. The redemption price is fixed at ₹14,901 per unit based on the simple average of closing price of gold for three business days - April 28, April 29, and April 30, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA).
The bond, which was released on May 4, 2018, had an issue price of ₹3,114 per unit, with RBI offering a discount of ₹50 for online investors, making the discounted issue price ₹3,064 per unit. At the offline issue price, SGB 2018-19 series 1 has delivered 378.52% returns, while including the online discount brings the returns to a breathtaking 386.32%. For a ₹1 lakh investment, investors would receive ₹3.78 lakh to ₹4.86 lakh respectively, representing gains of ₹2.78 lakh to ₹3.86 lakh.
Beyond the principal gains, SGBs offer coupon rates of 2.50% paid half-yearly, translating to 5% per annum over the eight-year period. The bonds are issued in denominations of 1 gram of gold and multiples thereof, with a minimum investment of 1 gram and maximum subscription limits of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF), and 20 kg for trusts and similar entities. These securities are held in RBI books or demat form, eliminating storage risks and providing assured market value at maturity.
SGBs offer significant tax advantages with capital gains tax exempted for individuals on redemption, while providing indexation benefits for long-term capital gains. The redemption process involves crediting both interest and redemption proceeds to the bank account provided at the time of purchase. Investors receive one-month advance notice before maturity, with proceeds credited on the maturity date. The bonds are free from making charges, purity issues, and storage risks associated with physical gold holdings.
