Dhanteras 2025: Gold Hits Record Highs, but SGB Delivers 338% Returns in 8 Years

Sovereign Gold Bond Investors Make 338 Returns: Gold continues to shine on the auspicious occasion of Dhanteras, but prices are also skyrocketing. The continuous rise over the past several days has made this festival challenging for investors. Gold is a popular safe haven in India, offering strong long-term returns. Compared to the past four Dhanteras, prices have risen 50-60%. However, one government bond has surprised investors, delivering a whopping 338% return in 8 years. Yes, the Sovereign Gold Bond (SGB) 2017-18 Series III reached maturity today, proving to be a digital alternative 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 bond opened for subscription on October 9-11, 2017, when the issue price was just ₹2,866 per gram. After eight years, the net return per gram was ₹9,701, representing a total return of 338%. This includes the 2.5% annual interest compounded semi-annually, which is tax-free.

This redemption price is based on the average price of 999 purity gold from October 13-15, 2025, as determined 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 better than physical gold?

Launched in 2015, SGBs are a government-backed digital alternative 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% annual interest (tax-free on maturity)

Tenure                      8 years, with premature redemption option after 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 available to Indian residents (individuals, HUFs, trusts, universities, and charitable institutions) under the Foreign Exchange Management Act (FEMA) 1999. Even if you become 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 costs and extra interest earnings.
• Physical Gold: For immediate purchase, but subject to 3% GST and a 10-15% making charge.
• Tax: With indexation after 3 years.
• Tip: Check the new SGB series on Dhanteras—RBI may launch one soon. Always buy hallmarked gold.