Sovereign Gold Yoke Investors Make 338 Returns: Gold continues to shine on the refreshing occasion of Dhanteras, but prices are moreover skyrocketing. The continuous rise over the past several days has made this festival challenging for investors. Gold is a popular unscratched oasis in India, offering strong long-term returns. Compared to the past four Dhanteras, prices have risen 50-60%. However, one government yoke has surprised investors, delivering a whopping 338% return in 8 years. Yes, the Sovereign Gold Yoke (SGB) 2017-18 Series III reached maturity today, proving to be a digital volitional to physical gold.
SGB 2017-18 Series III: A 'Golden' Formula for 338% Returns
The Reserve Bank of India (RBI) set the final redemption price for this series at 12,567 per gram. The yoke opened for subscription on October 9-11, 2017, when the issue price was just 2,866 per gram. Without eight years, the net return per gram was 9,701, representing a total return of 338%. This includes the 2.5% yearly interest compounded semi-annually, which is tax-free.
This redemption price is based on the stereotype price of 999 purity gold from October 13-15, 2025, as unswayable by the India Bullion and Jewellers Association (IBJA). This series, which matures on October 16, has delivered record returns to investors while protecting them from the volatility of the gold market. If you had invested 28,660 for 10 grams, you would have earned Rs 125,670 plus interest today!
SGBs: Why are they largest than physical gold?
Launched in 2015, SGBs are a government-backed digital volitional to physical gold. They track the price of gold but eliminate the worry of storage, theft, or making charges. Key benefits:
Features Description:
Returns Gold price appreciation 2.5% yearly interest (tax-free on maturity)
Tenure 8 years, with premature redemption option without 5 years
Risks Capital loss possible if gold prices fall, but units remain fixed
Investment limit: Minimum 1 gram, maximum 4 kg (for individuals/HUFs)
As per RBI guidelines, SGBs are misogynist to Indian residents (individuals, HUFs, trusts, universities, and charitable institutions) under the Foreign Exchange Management Act (FEMA) 1999. Even if you wilt a non-resident, you can hold it until maturity.
SGB vs. Physical Gold—Which One to Choose?
- Choose SGB if: Long-term investor. No storage financing and uneaten interest earnings.
- Physical Gold: For firsthand purchase, but subject to 3% GST and a 10-15% making charge.
- Tax: With indexation without 3 years.
- Tip: Check the new SGB series on Dhanteras—RBI may launch one soon. Always buy hallmarked gold.
