Sovereign Gold Bonds 2019-20 Series IX Give 147% Return in 5 Years – RBI Announces Redemption Details

If you bought the Sovereign Gold Bond (SGB) 2019-20 Series IX in February 2020, you’ve seen one of the best performances in recent years. The Reserve Bank of India (RBI) has set the premature redemption price at ₹10,070 per gram, which means a profit of ₹6,000 per unit, or 147% in five years. This works out to an annual compounded return (CAGR) of about 20%. The original issue price in September 2019 was ₹4,070 per gram. This figure does not even include the 2.5% annual interest that investors also received.

Other Series Also Deliver Gains

The 2020-21 Series V, issued in August 2020, is also eligible for premature redemption. It has delivered around 89% total returns, or a 13.5% CAGR, translating to ₹4,736 gain per unit. The issue price was ₹5,334 per gram.

About the SGB Scheme

Launched in November 2015 under the Gold Monetisation Scheme, SGBs encouraged investment in digital gold instead of physical gold to reduce India’s gold imports. Managed by the RBI, the scheme offered safe, interest-bearing gold investments.

• Eligibility: Indian citizens, HUFs, trusts, and institutions
• Limits: Minimum 1 gram; maximum 4 kg per year for individuals, 20 kg for institutions
• Tenure: 8 years, with premature redemption allowed after 5 years
• Returns: Linked to gold prices, plus 2.5% annual interest paid semi-annually

Redemption History

From April–September 2024, 26 series were redeemed early, covering bonds from 2016-17 to 2018-19. Between April–September 2025, 33 series are on the RBI’s premature redemption list, including bonds from 2017-18 to 2020-21. Early tranches, like the November 2015 series, have already matured and paid out.

Read More: Bought Gold in Dubai to Enter the Raffle Draw 2025? Here's What Happens When You Sell it in India Upon Return.

Why the Scheme Ended

The government stopped issuing new SGBs in February 2024, saying it had met its goals of lowering gold imports and shifting investor preference to digital gold. Administrative costs and evolving investment trends also played a role in the decision.

Key Takeaway

The 2019-20 Series IX shows how patience and a secure, government-backed investment can pay off. The strong rise in gold prices, along with fixed interest, made SGBs a golden deal for investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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.