Sovereign Gold Bonds give huge profits as gold prices rise: RBI announces early redemption schedule

Sovereign Gold Bonds profits: The Reserve Bank of India shared the price for early redemption of many Sovereign Gold Bonds that are due between now and September 2025. The most recent one was the SGB 2019-20 Series-IV. Its early redemption happened on September 17, 2025, and the RBI fixed the price at ₹11,003 for one unit. This price came after checking the average gold price of 999 purity for three business days, which were September 12, 15 and 16.

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When the bond first came out, the issue price was only ₹3,890. So this gave investors a huge return of 183%, and that is even before adding the 2.5% interest they got every year.

How SGBs work?

SGBs are bonds from the government, but they are linked to gold. One unit means one gram of gold. They run for eight years but investors can get their money back after five years. Early redemption only happens on the dates when interest is paid, which is two times in a year.

The price for redemption always depends on the average gold price of 999 purity for the three business days before the redemption date. This price is published by the India Bullion and Jewellers Association. According to Upstox, investors also earn 2.5% return every year, which is deposited in their account two times a year, and on top of that they also gain from the rise in gold prices.

Gold prices hit record highs

Gold has become very expensive this year. Prices in 2025 alone have jumped more than 40%. There are many reasons for this, like global political tension, market ups and downs, weak currencies, and big central banks buying gold.

In Delhi, gold of 24K purity closed at ₹1,13,800 for 10 gram on September 12. At the end of 2024, the same gold was only ₹78,950 for 10 gram. Gold futures also broke many records in September. On September 16, futures for October delivery touched ₹1,10,666 per 10 gram on the Multi-Commodity Exchange.

This rise gave investors in SGBs very big profits. But for the government, these bonds became too costly. That is why the government stopped new SGBs in the Union Budget of 2025. New series may come only if gold prices cool down and these bonds again look cheaper than other borrowings like government securities.

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Meanwhile, gold ETFs have also seen huge inflows. In August alone, inflows rose 74.3% to ₹2,189.51 crore. After the US Fed cut interest rates, gold prices went a little down for a short time.

SGBs Scheme Calendar (October 2025-March 2026)

Here is the SGBs Scheme Calendar for premature redemption between October 2025 and March 2026: