Sovereign gold bonds premature withdrawal in May can get 16.5% returns; key points to keep in mind while exiting SGB early
sovereign gold bonds (SGBs) are due for early withdrawal in May. You can prematurely withdraw your sovereign gold bond investment once it completes the fifth year. As gold prices continue to rise above Rs 71,000 per 10 grams, investors can expect attractive returns from their sovereign gold bond investments.
How much tax will you have to pay if you withdraw prematurely? Should you withdraw your sovereign gold bond prematurely? ET Wealth Online explains the nitty-gritty of premature withdrawal of sovereign gold bonds and the key aspects an investor must consider before going for it.
How much return can you expect from your sovereign gold bond investment?
Issued on November 20, 2017, Sovereign Gold Bond 2017-18 Series VIII will be up for premature redemption on May 20, 2024. Let's find out how much return investors can expect from this gold bond tranche.
The Reserve Bank of India (RBI) determines the premature redemption price of SBGs based on a simple average of three days’ closing prices of 999 purity gold. The three days taken into consideration are the ones preceding the maturity date. The prices of gold published by the India Bullion and Jewellers Association (IBJA) are used for the calculation. Accordingly, the simple average closing price of gold (999 purity) for the past three business days — April 26, 29, 30 — will be Rs 7,218 (calculated as of May 1, 2024). Hence, we can assume that the premature redemption price of Sovereign Gold Bond 2017-18 Series VIII will be Rs 7,218 per gram.
Sovereign Gold Bond
