Gold’s golden run: This SGB issue converted Rs 2 lakh investment into Rs 9.32 lakh in 7 years
The Reserve Bank of India (RBI) has announced the final redemption price for the SGB 2017–18 Series-XII at Rs 13,245 per unit. The price is based on the average closing price of 999-purity gold for the three business days preceding the redemption date.
- Dec 18, 2025,
- Updated Dec 18, 2025 1:09 PM IST
A sharp rally in global gold prices has delivered windfall gains to investors in certain Sovereign Gold Bond (SGB) tranches, with the 2017–18 Series-XII turning a Rs 2 lakh investment into Rs 9.32 lakh at maturity. The tranche, which matured on December 18, 2025, has generated an absolute return of about 366% over its eight-year tenure, underlining how gold has emerged as one of the best-performing asset classes in recent years.
Gold prices have been on a strong upward trajectory in 2025, recording their steepest rise since the 1979 oil crisis. The yellow metal has more than doubled over the past two years, touching a record $4,381 per troy ounce in October, driven by geopolitical tensions, central bank buying, a weaker dollar and demand for safe-haven assets.
Reflecting this surge, the Reserve Bank of India (RBI) has announced the final redemption price for the SGB 2017–18 Series-XII at Rs 13,245 per unit. The price is based on the average closing price of 999-purity gold for the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association (IBJA).
The tranche was originally open for subscription between December 11 and 13, 2017, at an issue price of Rs 2,840 per gram after a discount. Investors who bought gold bonds at this price will now receive Rs 13,245 per gram at maturity, translating into an absolute gain of Rs 10,405 per gram. On a simple basis, this works out to a return of 366.3% over the holding period, excluding interest income.
For investors who had allocated Rs 2 lakh to this tranche, the total maturity payout would amount to Rs 9.32 lakh, highlighting the scale of wealth creation from the gold rally. In addition to price appreciation, SGB holders also earned a fixed interest of 2.5% per annum on the nominal value of the investment, paid semi-annually. The final interest payment will be credited along with the principal at maturity.
The strong performance of this SGB tranche reinforces gold’s role as a long-term hedge and portfolio stabiliser, particularly during periods of global uncertainty and inflationary pressure.
Record payouts for SGB 2017-18 Series-XI and 2019-20 Series-I
Sovereign Gold Bond (SGB) holders in the 2017-18 Series-XI are set for a stellar redemption of Rs 12,801 per gram starting December 11—an standout return since the program's launch. The RBI has also fixed the same price for the premature redemption of 2019-20 Series-I, as both use the same gold-linked pricing mechanism.
Impressive 341% Gains from 2017-18 Series-XI Launched at Rs 2,952 per gram (Rs 2,902 online), this series delivers a whopping Rs 9,899 gain per gram after eight years. That's a straightforward 341% return, not even factoring in the 2.5% yearly interest SGBs provide.
Quick Stats: 2017-18 Series-XI
Issued: December 11, 2017
Issue price: Rs 2,952 (Rs 2,902 online)
Redemption: Rs 12,801
Gain: Rs 9,899 per gram
Return: 341% (excl. interest)
Early Exit Option for 2019-20 Series-I Though SGBs mature in eight years, exits are possible post-fifth year on interest dates. For this series (issued June 11, 2019), December 11, 2025, marks the first window, offering Rs 12,801 per gram.
Quick Stats: 2019-20 Series-I
Issue price: Rs 3,196 (Rs 3,146 online)
Early redemption: December 11, 2025
Price: Rs 12,801
SGBs outshine physical gold
The SGB scheme, managed by the RBI on behalf of the Government of India, offers a secure alternative to holding physical gold, eliminating concerns over storage and purity.
These bonds beat buying gold bars by cutting storage hassles, purity worries, and costs—plus they pay 2.5% interest annually. They're liquid, tradable, pledgeable, and tax-free on maturity for individuals.
Premature redemption is allowed after five years on interest payout dates. However, investors are advised that while there may be a risk of capital loss if market prices of gold decline, the number of gold units held remains unchanged.
On the date of maturity, SGB proceeds will be directly credited to investors’ bank accounts as per the records. The RBI has advised investors to update their banking details if any changes have occurred since the time of the initial investment. The strong performance of this SGB tranche highlights the scheme’s role in providing long-term returns linked to the gold market while maintaining the security and convenience of a government-backed financial instrument.
A sharp rally in global gold prices has delivered windfall gains to investors in certain Sovereign Gold Bond (SGB) tranches, with the 2017–18 Series-XII turning a Rs 2 lakh investment into Rs 9.32 lakh at maturity. The tranche, which matured on December 18, 2025, has generated an absolute return of about 366% over its eight-year tenure, underlining how gold has emerged as one of the best-performing asset classes in recent years.
Gold prices have been on a strong upward trajectory in 2025, recording their steepest rise since the 1979 oil crisis. The yellow metal has more than doubled over the past two years, touching a record $4,381 per troy ounce in October, driven by geopolitical tensions, central bank buying, a weaker dollar and demand for safe-haven assets.
Reflecting this surge, the Reserve Bank of India (RBI) has announced the final redemption price for the SGB 2017–18 Series-XII at Rs 13,245 per unit. The price is based on the average closing price of 999-purity gold for the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association (IBJA).
The tranche was originally open for subscription between December 11 and 13, 2017, at an issue price of Rs 2,840 per gram after a discount. Investors who bought gold bonds at this price will now receive Rs 13,245 per gram at maturity, translating into an absolute gain of Rs 10,405 per gram. On a simple basis, this works out to a return of 366.3% over the holding period, excluding interest income.
For investors who had allocated Rs 2 lakh to this tranche, the total maturity payout would amount to Rs 9.32 lakh, highlighting the scale of wealth creation from the gold rally. In addition to price appreciation, SGB holders also earned a fixed interest of 2.5% per annum on the nominal value of the investment, paid semi-annually. The final interest payment will be credited along with the principal at maturity.
The strong performance of this SGB tranche reinforces gold’s role as a long-term hedge and portfolio stabiliser, particularly during periods of global uncertainty and inflationary pressure.
Record payouts for SGB 2017-18 Series-XI and 2019-20 Series-I
Sovereign Gold Bond (SGB) holders in the 2017-18 Series-XI are set for a stellar redemption of Rs 12,801 per gram starting December 11—an standout return since the program's launch. The RBI has also fixed the same price for the premature redemption of 2019-20 Series-I, as both use the same gold-linked pricing mechanism.
Impressive 341% Gains from 2017-18 Series-XI Launched at Rs 2,952 per gram (Rs 2,902 online), this series delivers a whopping Rs 9,899 gain per gram after eight years. That's a straightforward 341% return, not even factoring in the 2.5% yearly interest SGBs provide.
Quick Stats: 2017-18 Series-XI
Issued: December 11, 2017
Issue price: Rs 2,952 (Rs 2,902 online)
Redemption: Rs 12,801
Gain: Rs 9,899 per gram
Return: 341% (excl. interest)
Early Exit Option for 2019-20 Series-I Though SGBs mature in eight years, exits are possible post-fifth year on interest dates. For this series (issued June 11, 2019), December 11, 2025, marks the first window, offering Rs 12,801 per gram.
Quick Stats: 2019-20 Series-I
Issue price: Rs 3,196 (Rs 3,146 online)
Early redemption: December 11, 2025
Price: Rs 12,801
SGBs outshine physical gold
The SGB scheme, managed by the RBI on behalf of the Government of India, offers a secure alternative to holding physical gold, eliminating concerns over storage and purity.
These bonds beat buying gold bars by cutting storage hassles, purity worries, and costs—plus they pay 2.5% interest annually. They're liquid, tradable, pledgeable, and tax-free on maturity for individuals.
Premature redemption is allowed after five years on interest payout dates. However, investors are advised that while there may be a risk of capital loss if market prices of gold decline, the number of gold units held remains unchanged.
On the date of maturity, SGB proceeds will be directly credited to investors’ bank accounts as per the records. The RBI has advised investors to update their banking details if any changes have occurred since the time of the initial investment. The strong performance of this SGB tranche highlights the scheme’s role in providing long-term returns linked to the gold market while maintaining the security and convenience of a government-backed financial instrument.