{"id":14605,"date":"2026-07-06T13:04:21","date_gmt":"2026-07-06T07:34:21","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=14605"},"modified":"2026-07-06T13:07:06","modified_gmt":"2026-07-06T07:37:06","slug":"how-is-the-sgb-redemption-price-calculated-complete-formula-explained","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/bond-news\/how-is-the-sgb-redemption-price-calculated-complete-formula-explained\/","title":{"rendered":"How is the SGB Redemption Price Calculated? Complete Formula Explained"},"content":{"rendered":"\n

The SGB redemption price is determined by the Reserve Bank of India (RBI) using the simple average of the closing price of 999 purity gold for the preceding three business days<\/strong>. This price is published by the India Bullion and Jewellers Association (IBJA)<\/p>\n\n\n\n

When Sovereign Gold Bonds<\/a> are redeemed, the price is tied to the current market value of gold, not what you originally paid. So, at maturity or if you redeem early, your returns will reflect the going rate for gold. This is quite relevant right now, since a bunch of SGB tranches from 2020 and 2021 are hitting their 5-year mark, which means they can be redeemed early through 2026.\u00a0<\/p>\n\n\n\n

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