SGB 2021-22 Series-II: How A Rs 1 Lakh Investment In Gold Grew To Rs 3.27 Lakh, Delivering A 227% Return
May 30, 2026
SGB 2021-22 Series-II Premature Redemption: RBI has set the premature redemption price for SGB 2021-22 Series-II at Rs 15,672, delivering returns of over 227 per cent for investors., Personal Finance, Times Now
SGB 2021-22 Series-II: RBI announces the early redemption of the gold bonds. (File Photo)
Photo : BCCL
SGB 2021-22 Series-II Premature Redemption: The Reserve Bank of India (RBI) has announced the early redemption price for the Sovereign Gold Bond (SGB) 2021-22 Series-II, offering investors an opportunity to exit their investment before maturity. Bondholders eligible for premature redemption can exercise the option on June 1, 2026, in accordance with the rules governing Sovereign Gold Bonds. The latest redemption value highlights the strong appreciation in gold prices over the past five years, resulting in substantial gains for investors who subscribed to the scheme during its launch period in 2021.
Under the Sovereign Gold Bond framework, investors are allowed to redeem their holdings before maturity after completing five years from the date of issuance. Such redemption is permitted on interest payment dates.
The RBI calculates the redemption amount using the simple average of the closing prices of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) during the three working days immediately preceding the redemption date. For the redemption scheduled on June 1, 2026, the calculation was based on gold prices recorded on May 26, May 27, and May 29, 2026.
According to the central bank, the premature redemption price for SGB 2021-22 Series-II has been set at Rs 15,672 per unit.
When the bond was issued in 2021, online subscribers were able to purchase it at Rs 4,792 per gram after receiving the digital payment discount. For investors who bought at this price, the appreciation translates into an absolute gain of Rs 10,880 per unit, excluding the interest earned during the holding period. So, the percentage return works out to approximately 227.05 per cent.
For example, an investment of Rs 1 lakh made at the issue price would have grown to nearly Rs 3.27 lakh solely on account of capital appreciation:
Rs 1,00,000 + 227.05 per cent of Rs 1,00,000
= Rs 1,00,000 + Rs 2,27,050
= Rs 3,27,050
Investors who purchased through offline channels had subscribed at Rs 4,842 per gram and have also benefited significantly from the rise in gold prices.
What Is Sovereign Gold Bonds?
Sovereign Gold Bonds are government-backed securities denominated in grams of gold. They offer an alternative to owning physical gold while allowing investors to benefit from changes in gold prices. The bonds are issued by the RBI on behalf of the Government of India. Investors pay the issue price in cash and receive the redemption amount in cash upon maturity or eligible early redemption.
Apart from capital appreciation linked to gold prices, SGBs also provide a fixed annual interest rate of 2.50 per cent on the initial investment amount. The interest is credited semi-annually to the investor’s bank account, with the final payment made along with the redemption proceeds.
SGBs are available in denominations of one gram of gold and multiples thereof. The minimum investment permitted is one gram. The maximum holding limit for individual investors is 4 kilograms of gold in a financial year. Hindu Undivided Families (HUFs) are also allowed to invest up to 4 kilograms, while trusts and certain notified entities can invest up to 20 kilograms.
(Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
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Priya Raghuvanshi author
She is working as a Chief Copy Editor at Times Now’s Business Desk, where she covers key developments in the stock market, Indian corporates across se ... View More
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Photo : BCCL
SGB 2021-22 Series-II Premature Redemption: The Reserve Bank of India (RBI) has announced the early redemption price for the Sovereign Gold Bond (SGB) 2021-22 Series-II, offering investors an opportunity to exit their investment before maturity. Bondholders eligible for premature redemption can exercise the option on June 1, 2026, in accordance with the rules governing Sovereign Gold Bonds. The latest redemption value highlights the strong appreciation in gold prices over the past five years, resulting in substantial gains for investors who subscribed to the scheme during its launch period in 2021.
Under the Sovereign Gold Bond framework, investors are allowed to redeem their holdings before maturity after completing five years from the date of issuance. Such redemption is permitted on interest payment dates.
The RBI calculates the redemption amount using the simple average of the closing prices of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) during the three working days immediately preceding the redemption date. For the redemption scheduled on June 1, 2026, the calculation was based on gold prices recorded on May 26, May 27, and May 29, 2026.
According to the central bank, the premature redemption price for SGB 2021-22 Series-II has been set at Rs 15,672 per unit.
When the bond was issued in 2021, online subscribers were able to purchase it at Rs 4,792 per gram after receiving the digital payment discount. For investors who bought at this price, the appreciation translates into an absolute gain of Rs 10,880 per unit, excluding the interest earned during the holding period. So, the percentage return works out to approximately 227.05 per cent.
For example, an investment of Rs 1 lakh made at the issue price would have grown to nearly Rs 3.27 lakh solely on account of capital appreciation:
Rs 1,00,000 + 227.05 per cent of Rs 1,00,000
= Rs 1,00,000 + Rs 2,27,050
= Rs 3,27,050
Investors who purchased through offline channels had subscribed at Rs 4,842 per gram and have also benefited significantly from the rise in gold prices.
What Is Sovereign Gold Bonds?
Sovereign Gold Bonds are government-backed securities denominated in grams of gold. They offer an alternative to owning physical gold while allowing investors to benefit from changes in gold prices. The bonds are issued by the RBI on behalf of the Government of India. Investors pay the issue price in cash and receive the redemption amount in cash upon maturity or eligible early redemption.
Apart from capital appreciation linked to gold prices, SGBs also provide a fixed annual interest rate of 2.50 per cent on the initial investment amount. The interest is credited semi-annually to the investor’s bank account, with the final payment made along with the redemption proceeds.
SGBs are available in denominations of one gram of gold and multiples thereof. The minimum investment permitted is one gram. The maximum holding limit for individual investors is 4 kilograms of gold in a financial year. Hindu Undivided Families (HUFs) are also allowed to invest up to 4 kilograms, while trusts and certain notified entities can invest up to 20 kilograms.
(Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
Latest News
Priya Raghuvanshi author
She is working as a Chief Copy Editor at Times Now’s Business Desk, where she covers key developments in the stock market, Indian corporates across se ... View More
News
Business
Personal Finance
End of Article