Sovereign Gold Bond has been quite popular investment from its launch. One question I often get asked about sovereign gold bond returns. As with most investments, the answer depends on when you invested, your holding period among other things. The post covers the topic in details.
Sovereign Gold Bond Returns – Issues till Date
The Sovereign Gold Bond was proposed in Budget 2015 and the first issue was opened for subscription in November 2015. From thereon there has been more than 50 issues now. The table below gives the dates, the issue price along with other details.
S. No. | Year | NSE Symbol | Name | Issue Date | Issue Price | Online Price | Interest | Early Redemption Date | Date of Redemption |
1 | 2015-16 | SGBNOV23 | Sovereign Gold Bonds-2015-Series-I | 30-Nov-15 | 2,684 | 2,684 | 2.75% | 30-Nov-20 | 30-Nov-23 |
2 | 2015-16 | SGBFEB24 | Sovereign Gold Bonds-2016-Series-I | 08-Feb-16 | 2,600 | 2,600 | 2.75% | 08-Feb-21 | 08-Feb-24 |
3 | 2015-16 | SGBMAR24 | Sovereign Gold Bonds-2016-Series-II | 29-Mar-16 | 2,916 | 2,916 | 2.75% | 29-Mar-21 | 29-Mar-24 |
4 | 2016-17 | SGBAUG24 | Sovereign Gold Bonds-2016-17-Series-I | 05-Aug-16 | 3,119 | 3,119 | 2.75% | 05-Aug-21 | 05-Aug-24 |
5 | 2016-17 | SGBSEP24 | Sovereign Gold Bonds-2016-17-Series-II | 30-Sep-16 | 3,150 | 3,150 | 2.75% | 30-Sep-21 | 30-Sep-24 |
6 | 2016-17 | SGBNOV24 | Sovereign Gold Bonds-2016-17-Series-III | 17-Nov-16 | 3,007 | 2,957 | 2.50% | 17-Nov-21 | 17-Nov-24 |
7 | 2016-17 | SGBMAR25 | Sovereign Gold Bonds-2016-17-Series-IV | 17-Mar-17 | 2,943 | 2,893 | 2.50% | 17-Mar-22 | 17-Mar-25 |
8 | 2017-18 | SGBMAY25 | Sovereign Gold Bonds 2017-18-Series-I | 12-May-17 | 2,951 | 2,901 | 2.50% | 12-May-22 | 12-May-25 |
9 | 2017-18 | SGBJUL25 | Sovereign Gold Bonds 2017-18-Series-II | 28-Jul-17 | 2,830 | 2,780 | 2.50% | 28-Jul-22 | 28-Jul-25 |
10 | 2017-18 | SGBOCT25 | Sovereign Gold Bonds 2017-18-Series-III | 16-Oct-17 | 2,956 | 2,906 | 2.50% | 16-Apr-23 | 16-Oct-25 |
11 | 2017-18 | SGBOCT25IV | Sovereign Gold Bonds 2017-18-Series-IV | 23-Oct-17 | 2,987 | 2,937 | 2.50% | 23-Apr-23 | 23-Oct-25 |
12 | 2017-18 | SGBOCT25V | Sovereign Gold Bonds 2017-18-Series-V | 30-Oct-17 | 2,971 | 2,921 | 2.50% | 30-Apr-23 | 30-Oct-25 |
13 | 2017-18 | SGBNOV25VI | Sovereign Gold Bonds 2017-18-Series-VI | 06-Nov-17 | 2,945 | 2,895 | 2.50% | 06-May-23 | 06-Nov-25 |
14 | 2017-18 | SGBNOV25 | Sovereign Gold Bonds 2017-18-Series-VII | 13-Nov-17 | 2,934 | 2,884 | 2.50% | 13-May-23 | 13-Nov-25 |
15 | 2017-18 | SGBNOV258 | Sovereign Gold Bonds 2017-18-Series-VIII | 20-Nov-17 | 2,961 | 2,911 | 2.50% | 20-May-23 | 20-Nov-25 |
16 | 2017-18 | SGBNOV25IX | Sovereign Gold Bonds 2017-18-Series-IX | 27-Nov-17 | 2,964 | 2,914 | 2.50% | 27-May-23 | 27-Nov-25 |
17 | 2017-18 | SGBDEC25 | Sovereign Gold Bonds 2017-18-Series-X | 04-Dec-17 | 2,961 | 2,911 | 2.50% | 04-Jun-23 | 04-Dec-25 |
18 | 2017-18 | SGBDEC25XI | Sovereign Gold Bonds 2017-18-Series-XI | 11-Dec-17 | 2,952 | 2,902 | 2.50% | 11-Jun-23 | 11-Dec-25 |
19 | 2017-18 | SGBDEC2512 | Sovereign Gold Bonds 2017-18-Series-XII | 18-Dec-17 | 2,890 | 2,840 | 2.50% | 18-Jun-23 | 18-Dec-25 |
20 | 2017-18 | SGBDEC2513 | Sovereign Gold Bonds 2017-18-Series-XIII | 26-Dec-17 | 2,866 | 2,816 | 2.50% | 26-Jun-23 | 26-Dec-25 |
21 | 2017-18 | SGBJAN26 | Sovereign Gold Bonds 2017-18-Series-XIV | 01-Jan-18 | 2,881 | 2,831 | 2.50% | 01-Jul-23 | 01-Jan-26 |
22 | 2018-19 | SGBMAY26 | Sovereign Gold Bonds 2018-19-Series-I | 04-May-18 | 3,114 | 3,064 | 2.50% | 04-Nov-23 | 04-May-26 |
23 | 2018-19 | SGBOCT26 | Sovereign Gold Bonds 2018-19-Series-II | 23-Oct-18 | 3,146 | 3,096 | 2.50% | 23-Apr-24 | 23-Oct-26 |
24 | 2018-19 | SGBNOV26 | Sovereign Gold Bonds 2018-19-Series-III | 13-Nov-18 | 3,183 | 3,133 | 2.50% | 13-May-24 | 13-Nov-26 |
25 | 2018-19 | SGBDEC26 | Sovereign Gold Bonds 2018-19-Series-IV | 01-Jan-19 | 3,119 | 3,069 | 2.50% | 01-Jul-24 | 01-Jan-27 |
26 | 2018-19 | SGBJAN27 | Sovereign Gold Bonds 2018-19-Series-V | 22-Jan-19 | 3,214 | 3,164 | 2.50% | 22-Jul-24 | 22-Jan-27 |
27 | 2018-19 | SGBFEB27 | Sovereign Gold Bonds 2018-19-Series-VI | 12-Feb-19 | 3,326 | 3,276 | 2.50% | 12-Aug-24 | 12-Feb-27 |
28 | 2019-20 | SGBJUN27 | Sovereign Gold Bonds 2019-20-Series-I | 11-Jun-19 | 3,196 | 3,146 | 2.50% | 11-Dec-24 | 11-Jun-27 |
29 | 2019-20 | SGBJUL27 | Sovereign Gold Bonds 2019-20-Series-II | 16-Jul-19 | 3,443 | 3,393 | 2.50% | 16-Jan-25 | 16-Jul-27 |
30 | 2019-20 | SGBAUG27 | Sovereign Gold Bonds 2019-20-Series-III | 14-Aug-19 | 3,499 | 3,449 | 2.50% | 14-Feb-25 | 14-Aug-27 |
31 | 2019-20 | SGBSEP27 | Sovereign Gold Bonds 2019-20-Series-IV | 17-Sep-19 | 3,890 | 3,840 | 2.50% | 17-Mar-25 | 17-Sep-27 |
32 | 2019-20 | SGBOCT27 | Sovereign Gold Bonds 2019-20-Series-V | 15-Oct-19 | 3,788 | 3,738 | 2.50% | 15-Apr-25 | 15-Oct-27 |
33 | 2019-20 | SGBOCT27VI | Sovereign Gold Bonds 2019-20-Series-VI | 30-Oct-19 | 3,835 | 3,785 | 2.50% | 30-Apr-25 | 30-Oct-27 |
34 | 2019-20 | SGBDC27VII | Sovereign Gold Bonds 2019-20-Series-VII | 10-Dec-19 | 3,795 | 3,745 | 2.50% | 10-Jun-25 | 10-Dec-27 |
35 | 2019-20 | SGBJ28VIII | Sovereign Gold Bonds 2019-20-Series-VIII | 21-Jan-20 | 4,016 | 3,966 | 2.50% | 21-Jul-25 | 21-Jan-28 |
36 | 2019-20 | SGBFEB28IX | Sovereign Gold Bonds 2019-20-Series-IX | 11-Feb-20 | 4,070 | 4,020 | 2.50% | 11-Aug-25 | 11-Feb-28 |
37 | 2019-20 | SGBMAR28X | Sovereign Gold Bonds 2019-20-Series-X | 11-Mar-20 | 4,260 | 4,210 | 2.50% | 11-Sep-25 | 11-Mar-28 |
38 | 2020-21 | SGBAPR28I | Sovereign Gold Bonds 2020-21-Series-I | 28-Apr-20 | 4,639 | 4,589 | 2.50% | 28-Oct-25 | 28-Apr-28 |
39 | 2020-21 | SGBMAY28 | Sovereign Gold Bonds 2020-21-Series-II | 19-May-20 | 4,590 | 4,540 | 2.50% | 19-Nov-25 | 19-May-28 |
40 | 2020-21 | SGBJUN28 | Sovereign Gold Bonds 2020-21-Series-III | 16-Jun-20 | 4,677 | 4,627 | 2.50% | 16-Dec-25 | 16-Dec-28 |
41 | 2020-21 | SGBJUL28IV | Sovereign Gold Bonds 2020-21-Series-IV | 14-Jul-20 | 4,852 | 4,802 | 2.50% | 14-Jan-26 | 14-Jul-28 |
42 | 2020-21 | SGBAUG28V | Sovereign Gold Bonds 2020-21-Series-V | 11-Aug-20 | 5,334 | 5,284 | 2.50% | 11-Feb-26 | 11-Aug-28 |
43 | 2020-21 | SGBSEP28VI | Sovereign Gold Bonds 2020-21-Series-VI | 08-Sep-20 | 5,117 | 5,067 | 2.50% | 08-Mar-26 | 08-Sep-28 |
44 | 2020-21 | SGBOC28VII | Sovereign Gold Bonds 2020-21-Series-VII | 20-Oct-20 | 5,051 | 5,001 | 2.50% | 20-Apr-26 | 20-Oct-28 |
45 | 2020-21 | SGBN28VIII | Sovereign Gold Bonds 2020-21-Series-VIII | 18-Nov-20 | 5,177 | 5,127 | 2.50% | 18-May-26 | 18-Nov-28 |
46 | 2020-21 | SGBJAN29IX | Sovereign Gold Bonds 2020-21-Series-IX | 05-Jan-21 | 5,000 | 4,950 | 2.50% | 05-Jul-26 | 05-Jan-29 |
47 | 2020-21 | SGBJAN29X | Sovereign Gold Bonds 2020-21-Series-X | 19-Jan-21 | 5,104 | 5,054 | 2.50% | 19-Jul-26 | 19-Jan-29 |
48 | 2020-21 | SGBFEB29XI | Sovereign Gold Bonds 2020-21-Series-XI | 09-Feb-21 | 4,912 | 4,862 | 2.50% | 09-Aug-26 | 09-Feb-29 |
49 | 2020-21 | SGBMR29XII | Sovereign Gold Bonds 2020-21-Series-XII | 09-Mar-21 | 4,662 | 4,612 | 2.50% | 09-Sep-26 | 09-Mar-29 |
50 | 2021-22 | SGBMAY29I | Sovereign Gold Bonds 2021-22-Series-I | 25-May-21 | 4,777 | 4,727 | 2.50% | 25-Nov-26 | 25-May-29 |
51 | 2021-22 | SGBMAY29II | Sovereign Gold Bonds 2021-22-Series-II | 01-Jun-21 | 4,842 | 4,792 | 2.50% | ||
52 | 2021-22 | SGBMAY29III | Sovereign Gold Bonds 2021-22-Series-III | 08-Jun-21 | 4,889 | 4,839 | 2.50% | ||
53 | 2021-22 | Sovereign Gold Bonds 2021-22-Series-IV | 20-Jul-21 | ||||||
54 | 2021-22 | Sovereign Gold Bonds 2021-22-Series-V | 17-Aug-21 | ||||||
55 | 2021-22 | Sovereign Gold Bonds 2021-22-Series-VI | 07-Sep-21 |
Sovereign Gold Bond Returns on 1st Issue
This first issue of Sovereign Gold Bond completed 5 years in November 2020 and was open for early redemption on 30 May 2021. We would calculate the Sovereign Gold Bond Returns on this. There were two kind of gains you could make:
Based on the above this is how the cashflows would look like:
Date | Cash Flows | Cash Flows After 30% Tax | Comments |
20-Nov-15 | -2684 | -2683 | Investment |
31-May-16 | 36.91 | 25.39 | Interest |
31-Dec-16 | 36.91 | 25.39 | Interest |
31-May-17 | 36.91 | 25.39 | Interest |
31-Dec-17 | 36.91 | 25.39 | Interest |
31-May-18 | 36.91 | 25.39 | Interest |
31-Dec-18 | 36.91 | 25.39 | Interest |
31-May-19 | 36.91 | 25.39 | Interest |
31-Dec-19 | 36.91 | 25.39 | Interest |
31-May-20 | 36.91 | 25.39 | Interest |
31-Dec-20 | 36.91 | 25.39 | Interest |
31-May-21 | 4873.91 | 4862.39 | Interest + Maturity Amount |
XIRR | 13.5% | 12.8% |
We use XIRR function in Excel to calculate the Sovereign Gold Bond Returns and it comes out to be ~13.5% before taxes and ~12.8% for 30% tax bracket. To reiterate, the capital gains on Sovereign Gold Bond is tax free if its redeemed. But in case it’s sold in the stock market the capital gains are taxable as in the case of gold.
Know about the latest issues of Sovereign Gold Bonds
Sovereign Gold Bonds are one of the better ways to invest in gold. It’s safe, backed by government of India and you need not be worried about purity of gold or storage. The icing on the cake is you get interest paid on your investment. You can buy these Sovereign Gold Bonds from NSE/BSE but the liquidity is a problem. So it’s a good idea to subscribe to latest issue of Sovereign Gold Bonds which comes almost every month.
Sovereign Gold Bond Returns
The thing is what we calculated above is returns on 1st issue of Sovereign Gold Bond. However, your returns would vary on timing and duration of your investments. As of today, you can only sell these in stock exchanges. The table below gives the issue price, Interest rate, LTP (Last traded price on NSE on 30th May 2021), Interest Income and total & % Profit.
Total Profit = Interest Income till date + (LTP - Issue Price)
% Profit = Total Profit/Issue Price
S. No. | NSE Symbol | Name | Issue Date | Issue Price | Interest | LTP | Interest Income | Total Profit | % Profit |
1 | SGBNOV23 | Sovereign Gold Bonds-2015-Series-I | 30-Nov-15 | 2,684 | 2.75% | 4,899 | 406 | 2,215 | 83% |
2 | SGBFEB24 | Sovereign Gold Bonds-2016-Series-I | 08-Feb-16 | 2,600 | 2.75% | 4,870 | 358 | 2,270 | 87% |
3 | SGBMAR24 | Sovereign Gold Bonds-2016-Series-II | 29-Mar-16 | 2,916 | 2.75% | 4,825 | 401 | 1,909 | 65% |
4 | SGBAUG24 | Sovereign Gold Bonds-2016-17-Series-I | 05-Aug-16 | 3,119 | 2.75% | 4,827 | 386 | 1,708 | 55% |
5 | SGBSEP24 | Sovereign Gold Bonds-2016-17-Series-II | 30-Sep-16 | 3,150 | 2.75% | 4,807 | 390 | 1,657 | 53% |
6 | SGBNOV24 | Sovereign Gold Bonds-2016-17-Series-III | 17-Nov-16 | 3,007 | 2.50% | 4,825 | 338 | 1,818 | 60% |
7 | SGBMAR25 | Sovereign Gold Bonds-2016-17-Series-IV | 17-Mar-17 | 2,943 | 2.50% | 4,800 | 294 | 1,857 | 63% |
8 | SGBMAY25 | Sovereign Gold Bonds 2017-18-Series-I | 12-May-17 | 2,951 | 2.50% | 4,815 | 295 | 1,864 | 63% |
9 | SGBJUL25 | Sovereign Gold Bonds 2017-18-Series-II | 28-Jul-17 | 2,830 | 2.50% | 4,838 | 248 | 2,008 | 71% |
10 | SGBOCT25 | Sovereign Gold Bonds 2017-18-Series-III | 16-Oct-17 | 2,956 | 2.50% | 4,823 | 259 | 1,867 | 63% |
11 | SGBOCT25IV | Sovereign Gold Bonds 2017-18-Series-IV | 23-Oct-17 | 2,987 | 2.50% | 4,751 | 261 | 1,764 | 59% |
12 | SGBOCT25V | Sovereign Gold Bonds 2017-18-Series-V | 30-Oct-17 | 2,971 | 2.50% | 4,800 | 260 | 1,829 | 62% |
13 | SGBNOV25VI | Sovereign Gold Bonds 2017-18-Series-VI | 06-Nov-17 | 2,945 | 2.50% | 4,723 | 258 | 1,778 | 60% |
14 | SGBNOV25 | Sovereign Gold Bonds 2017-18-Series-VII | 13-Nov-17 | 2,934 | 2.50% | 4,927 | 257 | 1,993 | 68% |
15 | SGBNOV258 | Sovereign Gold Bonds 2017-18-Series-VIII | 20-Nov-17 | 2,961 | 2.50% | 4,785 | 259 | 1,824 | 62% |
16 | SGBNOV25IX | Sovereign Gold Bonds 2017-18-Series-IX | 27-Nov-17 | 2,964 | 2.50% | 4,800 | 259 | 1,836 | 62% |
17 | SGBDEC25 | Sovereign Gold Bonds 2017-18-Series-X | 04-Dec-17 | 2,961 | 2.50% | 4,998 | 222 | 2,037 | 69% |
18 | SGBDEC25XI | Sovereign Gold Bonds 2017-18-Series-XI | 11-Dec-17 | 2,952 | 2.50% | 4,790 | 221 | 1,838 | 62% |
19 | SGBDEC2512 | Sovereign Gold Bonds 2017-18-Series-XII | 18-Dec-17 | 2,890 | 2.50% | 4,675 | 217 | 1,785 | 62% |
20 | SGBDEC2513 | Sovereign Gold Bonds 2017-18-Series-XIII | 26-Dec-17 | 2,866 | 2.50% | 4,741 | 215 | 1,875 | 65% |
21 | SGBJAN26 | Sovereign Gold Bonds 2017-18-Series-XIV | 01-Jan-18 | 2,881 | 2.50% | 4,736 | 216 | 1,855 | 64% |
22 | SGBMAY26 | Sovereign Gold Bonds 2018-19-Series-I | 04-May-18 | 3,114 | 2.50% | 4,823 | 234 | 1,709 | 55% |
23 | SGBOCT26 | Sovereign Gold Bonds 2018-19-Series-II | 23-Oct-18 | 3,146 | 2.50% | 4,800 | 197 | 1,654 | 53% |
24 | SGBNOV26 | Sovereign Gold Bonds 2018-19-Series-III | 13-Nov-18 | 3,183 | 2.50% | 4,780 | 199 | 1,597 | 50% |
25 | SGBDEC26 | Sovereign Gold Bonds 2018-19-Series-IV | 01-Jan-19 | 3,119 | 2.50% | 4,850 | 156 | 1,731 | 55% |
26 | SGBJAN27 | Sovereign Gold Bonds 2018-19-Series-V | 22-Jan-19 | 3,214 | 2.50% | 4,790 | 161 | 1,576 | 49% |
27 | SGBFEB27 | Sovereign Gold Bonds 2018-19-Series-VI | 12-Feb-19 | 3,326 | 2.50% | 4,790 | 166 | 1,464 | 44% |
28 | SGBJUN27 | Sovereign Gold Bonds 2019-20-Series-I | 11-Jun-19 | 3,196 | 2.50% | 4,771 | 120 | 1,575 | 49% |
29 | SGBJUL27 | Sovereign Gold Bonds 2019-20-Series-II | 16-Jul-19 | 3,443 | 2.50% | 4,800 | 129 | 1,357 | 39% |
30 | SGBAUG27 | Sovereign Gold Bonds 2019-20-Series-III | 14-Aug-19 | 3,499 | 2.50% | 4,747 | 131 | 1,248 | 36% |
31 | SGBSEP27 | Sovereign Gold Bonds 2019-20-Series-IV | 17-Sep-19 | 3,890 | 2.50% | 4,789 | 146 | 899 | 23% |
32 | SGBOCT27 | Sovereign Gold Bonds 2019-20-Series-V | 15-Oct-19 | 3,788 | 2.50% | 4,756 | 142 | 968 | 26% |
33 | SGBOCT27VI | Sovereign Gold Bonds 2019-20-Series-VI | 30-Oct-19 | 3,835 | 2.50% | 4,774 | 144 | 939 | 24% |
34 | SGBDC27VII | Sovereign Gold Bonds 2019-20-Series-VII | 10-Dec-19 | 3,795 | 2.50% | 4,775 | 95 | 980 | 26% |
35 | SGBJ28VIII | Sovereign Gold Bonds 2019-20-Series-VIII | 21-Jan-20 | 4,016 | 2.50% | 4,790 | 100 | 774 | 19% |
36 | SGBFEB28IX | Sovereign Gold Bonds 2019-20-Series-IX | 11-Feb-20 | 4,070 | 2.50% | 4,934 | 102 | 864 | 21% |
37 | SGBMAR28X | Sovereign Gold Bonds 2019-20-Series-X | 11-Mar-20 | 4,260 | 2.50% | 4,756 | 107 | 496 | 12% |
38 | SGBAPR28I | Sovereign Gold Bonds 2020-21-Series-I | 28-Apr-20 | 4,639 | 2.50% | 4,800 | 116 | 161 | 3% |
39 | SGBMAY28 | Sovereign Gold Bonds 2020-21-Series-II | 19-May-20 | 4,590 | 2.50% | 4,780 | 115 | 190 | 4% |
40 | SGBJUN28 | Sovereign Gold Bonds 2020-21-Series-III | 16-Jun-20 | 4,677 | 2.50% | 4,780 | 58 | 103 | 2% |
41 | SGBJUL28IV | Sovereign Gold Bonds 2020-21-Series-IV | 14-Jul-20 | 4,852 | 2.50% | 4,779 | 61 | -73 | -1% |
42 | SGBAUG28V | Sovereign Gold Bonds 2020-21-Series-V | 11-Aug-20 | 5,334 | 2.50% | 4,800 | 67 | -534 | -10% |
43 | SGBSEP28VI | Sovereign Gold Bonds 2020-21-Series-VI | 08-Sep-20 | 5,117 | 2.50% | 4,786 | 64 | -331 | -6% |
44 | SGBOC28VII | Sovereign Gold Bonds 2020-21-Series-VII | 20-Oct-20 | 5,051 | 2.50% | 4,764 | 63 | -287 | -6% |
45 | SGBN28VIII | Sovereign Gold Bonds 2020-21-Series-VIII | 18-Nov-20 | 5,177 | 2.50% | 4,797 | 65 | -380 | -7% |
46 | SGBJAN29IX | Sovereign Gold Bonds 2020-21-Series-IX | 05-Jan-21 | 5,000 | 2.50% | 4,778 | 0 | -222 | -4% |
47 | SGBJAN29X | Sovereign Gold Bonds 2020-21-Series-X | 19-Jan-21 | 5,104 | 2.50% | 4,775 | 0 | (329) | -6% |
48 | SGBFEB29XI | Sovereign Gold Bonds 2020-21-Series-XI | 09-Feb-21 | 4,912 | 2.50% | 4,771 | 0 | (141) | -3% |
49 | SGBMR29XII | Sovereign Gold Bonds 2020-21-Series-XII | 09-Mar-21 | 4,662 | 2.50% | 4,763 | 0 | 101 | 2% |
50 | SGBMAY29I | Sovereign Gold Bonds 2021-22-Series-I | 25-May-21 | 4,777 | 2.50% | 0 | |||
51 | SGBMAY29II | Sovereign Gold Bonds 2021-22-Series-II | 01-Jun-21 | 4,842 | 2.50% | 0 | |||
52 | SGBMAY29III | Sovereign Gold Bonds 2021-22-Series-III | 08-Jun-21 | 4,889 | 2.50% | ||||
53 | Sovereign Gold Bonds 2021-22-Series-IV | 20-Jul-21 | |||||||
54 | Sovereign Gold Bonds 2021-22-Series-V | 17-Aug-21 | |||||||
55 | Sovereign Gold Bonds 2021-22-Series-VI | 07-Sep-21 |
Looking at the prices you can think that if you want to sell your Sovereign Gold Bond today you can get ~ 4,800 per bonds. This means that you would in loss if you had invested after June 2020 as the gold prices have gone up since then and come back to similar levels.
The second problem is the liquidity is very low for these Sovereign Gold Bond here and so you may not get fair price. If you look at the NSE data, the highest trading was just 1513 bonds and there were many series with no trading at all. This essentially means that you can get your best returns when the series open for early redemptions.
Is Sovereign Gold Bond a good investment?
Looking at the Sovereign Gold Bond returns, the next question is – is Sovereign Gold Bond a good investment?
My answer it depends – if you want to invest in gold for long term (at least 5 years), Sovereign Gold Bond is the best way out. It not only gives you market linked returns, but also is the most efficient way to invest in terms of cost of investment, holding cost, tax free capital gains and extra interest paid. You should try to hold the bond till the early redemption period as you may not get the right price by selling on stock exchange and if you do the capital gains would be taxable.
We hope this post helps you understand Sovereign Gold Bond returns and hopefully help you take the right investment decision.
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