SGB 2017-18 Redemption Price: Gold prices have seen a strong rally in 2025. Amid the rally, Sovereign Gold Bond investors are set to get bumper returns on their investment. Investors who had invested in SGB 2017-18 Series VIII tranche are set to gain over 300 per cent returns today.
SGB 2017-18 Series VIII Redemption Price
The final redemption date for SGB 2017-18 Series VIII is November 20, 2025. The Reserve Bank of India (RBI) announced the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series VIII at Rs 12,300 per gram or Rs 1,23,000 for 10 grams.
RBI calculated the final redemption price using the simple average of the closing price of gold of 999-purity. The prices used for the calculation include the closing price of the yellow metal published for the three business days prior to the redemption date. The closing price of 10 grams of 999 gold on November 17, November 18 and November 19 was Rs 1,22,714, Rs 1,21,366 and Rs 1,23,448, respectively.
SGB 2017-18 Series VIII Returns
SGB 2017-18 Series VIII investors will earn an absolute return of 317 per cent or a profit of Rs 9,349. The original issue price of SGB 2017-18 Series VIII was Rs 2,951 per gram. Additionally, by holding the SGBs for the complete eight-year period, they would have accrued a yearly interest of 2.5 per cent as well. Based on the 2.5 per cent interest rate, SGB 2017-18 Series VIII would have accrued an interest of Rs 73.78 per gram every year. Notably, the amount will be credited to the SGB holder’s bank account linked to the demat account automatically.
SGB Tax Treatment
The final redemption of SGBs is tax-exempt from income tax. However, investors who have held the SGB for the eight-year period would have paid tax on the 2.5 per cent interest earned each year according to their applicable slab rate.
Maintaining Exposure To Gold
Apart from the returns, gold investments offer a safety cushion or hedge against volatility. Typically, financial experts advise investors to maintain a modest allocation to gold, which is around 5 to 15 per cent of their total portfolio. By doing so, investors can achieve risk-adjusted returns and safeguard their portfolios from extreme volatility, market crashes, inflation, currency depreciation, and geopolitical uncertainty. Thus, investors with significant exposure to gold relative to their SGB holdings can consider using the gains made from redemption to rebalance their portfolio.
However, in order to rebalance their portfolio, investors must consider other Sebi-regulated gold instruments as new SGB issuances have been halted amid concerns regarding high redemption liabilities driven by rising gold prices.
The goal after redeeming a successful SGB investment is to re-establish your gold exposure efficiently, ideally while retaining as many of the benefits of SGBs as possible. Thus, investors must use the secondary market or other alternative options.
Recently, Sebi cautioned against investing in unregulated digital gold. Thus, investors can adjust their exposure to gold post-redemption via Gold ETFs, Gold Mutual Funds, or Gold Fund of Funds (FoF), and Electronic Gold Receipts (EGRs).
