Can I sell sovereign gold bonds? It has just been 1 year.
Hi Harini, the short answer is yes, but how you sell them makes all the difference.
Sovereign Gold Bonds have an 8-year maturity period, but the government allows early redemption from the 5th year onwards. But that’s only applicable if you redeem them directly with the RBI. However, if you’re looking to exit after just a year, your best option is to sell them on the secondary market.
Here’s what I learned from doing it myself:
- The selling price depends on market demand and the average closing price of 999-purity gold over the last 3 business days.
- You will need a demat account to sell them easily; offline sales through the bank or post office don’t work after a year.
Keep in mind, if you sell after one year, it will be considered as Long-Term Capital Gains (LTCG) and a 12.5% tax is applicable without indexation benefits.
In short, you absolutely can sell Sovereign Gold Bonds after a year, but plan it wisely. I see SGBs as a flexible way to invest in gold. They reward patience, yet still give you the freedom to cash out early. I hope this is helpful for you.