SGB 2020–21 Series IV Redemption Opens: Should You Cash In on 185% Gains?

• RBI opens premature redemption for Sovereign Gold Bond (SGB) 2020–21 Series IV today, January 14, after completing five years.
• The redemption price is fixed at Rs 13,929 per unit, calculated based on the average gold price of the last three business days.
• Investors who bought at the issue price of Rs 4,890 (or Rs 4,840 for online subscribers) have seen an absolute gain of over Rs 9,000 per unit, a 185% appreciation.
• Redemption provides liquidity and locks in gains, especially for near-term financial needs, while holding offers continued interest and potential future gold price upside.
• SGBs offer 2.5% annual interest and capital appreciation linked to gold prices, with tax exemption on capital gains upon redemption for individuals.

Why It Matters: SGB 2020–21 Series IV premature redemption offers investors a chance to lock in significant gains.