Archive · 21 Jan 2026
Sovereign Gold Bond investors gain 260% on early redemption
Investors who bought Sovereign Gold Bonds in 2020 are getting a big payoff.
The government said they can sell their bonds early in 2026 for ₹14,432 per gram.
They originally bought them for ₹3,966 per gram.
That's a 264% increase in price over six years, not counting the extra 2.5% interest they get every year.
The price is based on the average cost of gold over three days.
This shows how gold can be a good investment when other markets are uncertain.
Investors in the Sovereign Gold Bond 2019-20 Series VIII can redeem their bonds early on January 21, 2026, at ₹14,432 per gram.
The original issue price was ₹3,966 per gram, resulting in a 264% price appreciation over six years, excluding the 2.5% annual interest.
The redemption price is calculated as the simple average of the closing price of 999 purity gold over the previous three business days.
Premature redemption is allowed after the completion of five years from the date of issue, with the full maturity period being eight years.
The returns highlight gold's role as a long-term hedge during periods of global uncertainty and volatile equity markets.
- Who
- Investors in the Sovereign Gold Bond (SGB) 2019-20 Series VIII
- What
- Premature redemption of Sovereign Gold Bonds
- When
- January 21, 2026
- Where
- India
- Why
- To realize substantial gains from the price appreciation of gold
- Redemption Price
- ₹14,432 per gram
- Issue Price
- ₹3,966 per gram
- Absolute Return
- 264% over six years
- Annual Interest
- 2.5%
- Redemption Date
- January 21, 2026
- Issue Date
- January 21, 2020
- Redemption Calculation
- Simple average of 999 purity gold prices over three business days
- Premature Redemption Eligibility
- After five years from the date of issue