At this price, investors who bought the bonds at the original issue price of ₹4,260 per gram in March 2020 would earn an absolute return of about 273.7%, while those who purchased at the discounted online price of ₹4,210 per gram would see gains of roughly 278%, excluding the interest component.
The government had offered a ₹50 per gram discount to investors who applied online and paid through digital modes when the bonds were issued in March 2020.
The redemption price has been calculated based on the simple average of the closing price of 999-purity gold for the previous three business days — March 6, March 9 and March 10, 2026 — as published by the India Bullion and Jewellers Association (IBJA).
Premature redemption of SGBs is permitted after the fifth year from the date of issue, on interest payment dates. The 2019–20 Series X tranche was issued on March 11, 2020, making investors eligible for early exit now.
Apart from the capital gains from rising gold prices, SGB holders also earn a fixed interest of 2.5% per annum, paid semi-annually on the initial investment amount. This means the overall returns for investors would be higher when the cumulative interest payouts over the holding period are included.
Sovereign Gold Bonds carry a maturity period of eight years, though investors are allowed to exit early starting from the fifth year on designated dates. The scheme is aimed at offering investors exposure to gold prices in a financial form while reducing demand for physical gold.
The Union Budget 2026 proposed changes to the tax treatment of SGBs, introducing a distinction between primary subscribers and secondary-market buyers.
From April 1, 2026, the long-standing capital gains tax exemption on SGBs redeemed at maturity will be available only to investors who subscribe directly at the RBI’s primary issuance and hold the bonds till maturity. Investors who purchase SGBs from exchanges or other holders in the secondary market will not get tax-free redemption, even if they hold the bonds to maturity.
