SGB 2017-18 Series IX: Investors To Get Over 320% Returns As RBI Fixes Price For Final Redemption

SGB 2017-18 Series IX: Gold prices have been on a three-day spree as of November 27, 2025. While all investors who hold gold in their portfolio are likely to have gained from the uptick in prices, it has also led to a high redemption price for Sovereign Gold Bond (SGB) investors.

SGBs are securities issued through the Reserve Bank of India (RBI) on behalf of the government which are denominated in grams of gold, with the minimum investment quantity fixed at 1 gram.

The bonds come with a sovereign guarantee on both the principal amount (in grams of gold) and the interest payout. The scheme has a maturity of eight years. However, premature redemption is allowed after the fifth year from the date of issue, on a date announced by the RBI.

SGB 2017-18 Series IX Redemption Price

SGB 2017-18 Series IX matures on November 27, 2025. The RBI has set the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series IX at Rs 12,484 per gram or Rs 124,840 for 10 grams.

The central bank has set the price on the basis of the closing price of 999-purity gold determined by the Indian Bullion and Jewellers Association. The final redemption price is determined by calculating the simple average of the closing price of the yellow metal as shown on the IBJA website for three business days before the redemption date. The closing prices of 10 grams of 999 gold on November 26, November 25 and November 24 were Rs 1,23,057, Rs 1,25,342 and Rs 1,26,004, respectively.

SGB 2017-18 Series IX Returns

SGB 2017-18 Series IX investors will earn an absolute return of 321.18 per cent or a profit of   Rs 9,520. The issue price for SGB 2017-18 Series IX was Rs 2,964 per gram. Investors who purchased the SGB online would have gotten it at a discount of Rs 50, making the issue price Rs 2,914, leading to a profit of Rs 9,570 or a profit of 328.41 per cent.

Investors who are eligible for final redemption would have also earned a yearly interest of 2.50 per cent. For SGB 2017-18 Series IX investors, the amount would have been Rs 74.1 per gram every year. The final amount will be credited to the SGB investor’s bank account linked to the demat account automatically.

Taxation on SGBs

The redemption of SGBs is tax-exempt for investors who have held it for the entirety of the eight-year maturity period. However, the interest earned on the SGBs is not tax-exempt, thus investors would have paid a yearly tax on the interest earned basis their income-tax slab rate.

The SGB scheme was launched by the Government of India in November 2015 as a part of the broader Gold Monetisation Scheme. The scheme sought to reduce the pressure put on the Current Account Deficit (CAD) by gold imports and channel savings into the formal financial system for more productive use in the economy. The scheme was discontinued. While the SGB scheme has not been formally discontinued, no new tranches of the scheme have been issued since February 2024.