SGB 2018-19 Series-II Delivers 358.52% Return as RBI Opens Premature Redemption on October 23, 2026

The Sovereign Gold Bonds (SGB) 2018-19 Series-II is due for final redemption today on October 23, 2026, offering investors substantial returns on their initial investment.  

Issued by the Government of India, these bonds have completed their 8-year tenure with an impressive appreciation. 

Redemption Price and Returns Details 

The Reserve Bank of India (RBI) has announced the final redemption price for SGB 2018-19 Series-II at ₹14,425 per gram. Originally issued at ₹3,146 per gram in October 2018, the bonds have more than quadrupled in value over the 8-year period. It delivers an absolute return of 358.52% return based on the original issue price. 

The redemption price reflects the increase in gold prices over the years. Investors who availed the online discount paid ₹3,096 per gram. At redemption, they realise a gain of ₹11,279 per gram, translating to a 366% absolute return. 

Interest and Pricing Mechanism 

SGBs provide not only capital appreciation but also offer a fixed interest rate of 2.5% per annum on the initial purchase amount, paid semi-annually.  

The redemption price established by the RBI uses the simple average of the closing prices of 999-purity gold published by the India Bullion and Jewellers Association (IBJA) for the 3 preceding business days. 

Read More: SGB 2020-21 Series VII Delivers 192% return as RBI Opens Premature Redemption on October 19, 2026! 

Taxation Aspects 

As revised from April 1, 2026, the capital gains tax exemption on redemption at maturity applies to investors who held the bonds from primary issuance till maturity. Premature redemption and purchases from the secondary market are taxable. 

Conclusion 

The SGB 2018-19 Series-II has reached its maturity with a redemption price of ₹14,425 per gram, providing a return of over fourfold on the original issue price of ₹3,146 per gram. The fixed interest rate of 2.5% annually adds to the overall yield, factoring into the investment's growth over the tenure. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. 

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