SGB 2018-19 Series VI premature redemption at ₹15,102 locks 361% gain

The redemption price follows gold rather than the original issue price. For the 12 August window, the RBI took the simple average of closing prices for 999-purity gold across the three preceding business days, 7, 10 and 11 August, using rates from the India Bullion and Jewellers Association, the industry body whose reference prices anchor the program. Only the level on those three days matters, not the path that brought gold there. The design passes the bullion move straight into the payout, which is why the 2026 price sits so far above the 2019 issue price.

Sovereign Gold Bonds carry an eight-year maturity; premature redemption is available from the fifth year onward on interest payment dates. This window is one of those coupon dates. The RBI's SGB rules set a one-gram minimum and allow denominations in multiples of one gram.

Storage and making charges do not apply, and the coupon is calculated on the sum invested at issue, so the interest stream stays flat even as gold rallies. A 10-gram holding redeems at about ₹1.51 lakh in August, excluding the interest collected along the way.

The 361.1% figure counts price appreciation only. The redemption decision, Mint notes, does not stop at that number. Current gold allocation and the outlook for bullion prices matter just as much; so does the use of the proceeds. A holder who skips the August window gets another shot at the next interest payment date, when the exit price resets to that day's gold level. Staying in keeps the gold exposure and the 2.5% coupon running through the remaining life of the bond.

February 2027 is the scheduled maturity. Exiting in August gets out roughly six months early, giving up the final coupon of about ₹41 per gram and half a year of gold exposure.