Summary of this article
Reserve Bank of India (RBI) declared the premature redemption price for SGB 2018-19 Series-III.
SGB 2018-19 Series-III are expected to make gains of up to 295 per cent.
SGB 2018-19 Series-III premature redemption price is Rs 12,350 per unit.
The year 2025 has been a stellar year for safe-haven assets. Assets like gold and silver have touched record highs in 2025. Amid the rally, investors who had invested in Sovereign Gold Bonds (SGBs) in the past five years can also book profits and make stellar returns.
In a recent announcement, the Reserve Bank of India (RBI) declared the premature redemption price for SGB 2018-19 Series-III. The announcement of the premature redemption price gives an opportunity to SGB investors to benefit from the strong momentum seen in gold prices in 2025.
Sovereign Gold Bond (SGB) 2018-19 Series-III Price
According to the RBI’s announcement, the premature redemption price for SGB 2018-19 Series-III is Rs 12,350 per unit. The date for premature redemption is November 13, 2025.
Notably, the price for redemption has been calculated on the basis of the simple average of the closing price of gold of 999 purity published by India Bullion and Jewellers Association (IBJA) for the three working days prior to the redemption date (November 10, 11, and 12, 2025).
When Was SGB 2018-19 Series-III Issued
SGB 2018-19 Series-III tranche was open for subscription between November 5 and November 9, 2018. The bonds were issued on November 13, 2018.
How Much Has SGB 2018-19 Series-III Gained
Based on the redemption price of Rs 12,350, here’s how much money SGB 2018-19 Series-III investors are expected to gain:
The SGB 2018-19 Series-III tranche was issued at Rs 3,183 per gram, along with an additional discount for online investors. The effective issue price for SGB 2018-19 Series-III investors was Rs 3,133. Given the issue price, online investors will gain Rs 9,217 or 294 per cent and offline investors will gain Rs 9,167 or Rs 288 per cent.
Additionally, investors who have held the bonds would have received a fixed interest of 2.50 per cent per annum on the initial investment amount.
Investors also have the option of holding the SGB till maturity to benefit from long-term tax-free gains. SGB schemes have a maturity period of eight years. On the other hand, premature redemption is allowed by the RBI after the fifth year.
The SGB scheme was launched in November 2015. The scheme was introduced to give investors an option to invest in gold vis-a-vis methods other than traditional ones. The scheme sought to decrease India’s reliability on imported physical gold.
