Sovereign Gold Bond redemption yields nearly 228% return on investment

The Reserve Bank of India announced that the premature redemption of the Sovereign Gold Bond series 2021-22 Series VI is permissible after the fifth year, with the redemption price derived from the simple average of the 999-purity gold closing prices published by the India Bullion and Jewellers Association for the three business days preceding the redemption date. On September 7, 2026, the price was set at Rs 15,334 per unit, reflecting gold prices from September 2, 3 and 4, 2026.

The bond’s original issue price was Rs 4,682 per gram for online investors and Rs 4,732 per gram for offline buyers, yielding an absolute return of Rs 10,652 per unit, or roughly 228% before accounting for interest. In addition to capital gains, the bonds provide a fixed 2.50% annual interest, credited semi-annually to investors’ bank accounts. The redemption marks the first opportunity for holders to cash in after the five-year lock-in period.