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Which SGB series should you buy based on the highest discount?

This article shows you how to find SGBs trading at the maximum discount in the share market for long-term investment.

Which SGB series should you buy based on the highest discount?


Posted on 18 Sep 2024 • Updated on: 15 May 2025
Author: Sayan Sircar
5 mins read
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This article shows you how to find SGBs trading at the maximum discount in the share market for long-term investment.

Which SGB series should you buy based on the highest discount?

📚 Table of Contents

What is the value of an SGB?

After gold-price duty cut in Budget 2024, there is a lot of speculation in the market that new Sovereign Gold Bond (SGB) issues will not come.

Therefore, many investors, especially those who know that SGB gives the highest return of all types of gold, are trying to buy SGB from the share market. This article shows you which SGBs are currently trading at a discount.

The price of an SGB, i.e. the Fair Value, in the stock market depends on the demand and supply of the SGB apart from its intrinsic value.

Fair Value of SGB = Intrinsic value + Demand-supply effects

Intrinsic value depends on two things:

  • the current market price of 24-karat gold
  • the present value of all the interest payments yet to be received

The effect of demand-supply factors is unpredictable. Therefore we must understand how to calculate the intrinsic value of the SGB.

Intrinsic value = Gold price + present value of interest payments (PV) where PV = ([[Issue Price]] * [[Interest Rate]]/2 * (1 - (1 + (Discount Rate/2)) ^ -(([[Maturity Date]]-Today’s Date)/365.25 * 2))) / (Discount Rate/2)

We have assumed 6% as the interest rate. Higher values will find a lower number of SGBs trading at a discount.

If the SGB is quoted lower than this number, you should buy it. We have covered the exact calculation of the fair value of an SGB here: Sovereign Gold Bond (SGB): Which Series is Best for You?

Note: Only resident Indians can purchase SGB. NRIs trying to invest in SGB via resident demat accounts (where KYC is not updated to NRI status) violates RBI rules.


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Which SGB series are trading at the highest discount to fair value?

Here is the latest list of SGBs trading at a discount. Please click the table headers to sort.

Gold price is ₹94344 for 10 grams.

Symbol Issue Price Maturity Date Fair Value Discount Price ISIN Coupon
SGBJUL25 2830 2025-07-29 9448.57 1.31 9324.99 IN0020170034 2.5%
SGBOCT25IV 2987 2025-10-24 9466.55 2.18 9260.00 IN0020170067 2.5%
SGBOCT25V 2971 2025-10-31 9467.75 2.72 9210.00 IN0020170075 2.5%
SGBNOV25VI 2945 2025-11-07 9468.81 2.31 9250.00 IN0020170083 2.5%
SGBDEC25 2961 2025-12-05 9474.42 0.79 9400.00 IN0020170125 2.5%
SGBMAY26 3114 2026-05-05 9506.80 0.70 9440.00 IN0020180033 2.5%
SGBNOV26 3183 2026-11-14 9546.91 1.54 9400.00 IN0020180314 2.5%
SGBDEC26 3119 2027-01-02 9554.05 2.66 9300.00 IN0020180389 2.5%
SGBJAN27 3214 2027-01-23 9561.82 3.78 9200.00 IN0020180462 2.5%
SGBJUL27 3443 2027-07-17 9607.15 3.72 9250.00 IN0020190081 2.5%
SGBAUG27 3499 2027-08-15 9615.96 2.75 9351.05 IN0020190107 2.5%
SGBSEP27 3890 2027-09-18 9644.04 4.09 9250.00 IN0020190115 2.5%
SGBOCT27 3788 2027-10-16 9644.75 4.04 9254.96 IN0020190370 2.5%
SGBOCT27VI 3835 2027-10-31 9650.72 4.19 9246.66 IN0020190388 2.5%
SGBDC27VII 3795 2027-12-11 9657.51 3.91 9280.00 IN0020190461 2.5%
SGBJ28VIII 4016 2028-01-22 9680.24 3.93 9300.00 IN0020190537 2.5%
SGBFEB28IX 4070 2028-02-12 9688.45 5.04 9200.00 IN0020190545 2.5%
SGBMAR28X 4260 2028-03-12 9707.38 4.71 9250.00 IN0020190552 2.5%
SGBAPR28I 4639 2028-04-29 9744.32 5.11 9246.57 IN0020200062 2.5%
SGBMAY28 4590 2028-05-20 9746.50 4.79 9280.00 IN0020200088 2.5%
SGBJUN28 4677 2028-06-17 9759.79 4.71 9300.00 IN0020200104 2.5%
SGBJUL28IV 4852 2028-07-15 9779.58 5.16 9275.33 IN0020200146 2.5%
SGBAUG28V 5334 2028-08-12 9822.20 6.04 9229.16 IN0020200161 2.5%
SGBSEP28VI 5117 2028-09-09 9814.38 6.10 9216.14 IN0020200195 2.5%
SGBOC28VII 5051 2028-10-21 9821.20 6.21 9211.17 IN0020200203 2.5%
SGBN28VIII 5177 2028-11-19 9839.09 6.04 9245.00 IN0020200286 2.5%
SGBJAN29IX 5000 2029-01-06 9838.36 6.54 9195.20 IN0020200377 2.5%
SGBJAN29X 5104 2029-01-20 9850.64 6.50 9210.00 IN0020200385 2.5%
SGBFEB29XI 4912 2029-02-10 9840.57 6.60 9191.00 IN0020200393 2.5%
SGBMR29XII 4662 2029-03-10 9826.93 6.38 9200.21 IN0020200427 2.5%
SGBMAY29I 4777 2029-05-26 9856.29 6.49 9216.25 IN0020210053 2.5%
SGBJUN29II 4842 2029-06-02 9863.83 6.52 9220.85 IN0020210061 2.5%
SGBJU29III 4889 2029-06-09 9869.81 6.49 9229.00 IN0020210087 2.5%
SGBJUL29IV 4807 2029-07-21 9873.18 6.82 9200.00 IN0020210111 2.5%
SGBAUG29V 4790 2029-08-18 9878.67 6.67 9220.00 IN0020210129 2.5%
SGBSEP29VI 4732 2029-09-08 9878.50 6.82 9205.24 IN0020210145 2.5%
SGBNV29VII 4761 2029-11-03 9895.08 6.77 9225.00 IN0020210178 2.5%
SGBD29VIII 4791 2029-12-08 9906.65 7.12 9201.00 IN0020210228 2.5%
SGBJAN30IX 4786 2030-01-19 9916.47 7.02 9220.57 IN0020210236 2.5%
SGBMAR30X 5109 2030-03-09 9961.75 7.14 9250.00 IN0020210319 2.5%
SGBJUN30 5091 2030-06-30 9988.81 7.40 9250.00 IN0020220045 2.5%
SGBAUG30 5197 2030-08-31 10016.33 7.75 9240.01 IN0020220078 2.5%
SGBDE30III 5409 2030-12-28 10071.51 7.57 9309.15 IN0020220110 2.5%
SGBMAR31IV 5611 2031-03-15 10116.07 8.25 9281.25 IN0020220169 2.5%
SGBJUN31I 5926 2031-06-28 10183.82 9.06 9260.98 IN0020230069 2.5%
SGBSEP31II 5923 2031-09-21 10206.92 9.27 9260.81 IN0020230093 2.5%
SGBDE31III 6199 2031-12-29 10271.13 8.80 9367.67 IN0020230168 2.5%
SGBFEB32IV 6263 2032-02-22 10295.40 7.20 9553.74 IN0020230184 2.5%

You will need to place the order for your chosen SGB via your Demat account.

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What are the points to remember before buying SGB from the share market at a discount?

If you are investing in SGB, you need to be sure of the purpose of that investment. If you are accumulating gold for a future need like a child’s marriage, you need to buy that series with the highest maturity.

Of course, whenever you are placing an order for a thinly traded security like an SGB, then you need to ensure that you do not get a price so high that any discount to fair value disappears. Placing limit orders to lock in the purchase price is important.

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This post titled Which SGB series should you buy based on the highest discount? first appeared on 18 Sep 2024 at https://arthgyaan.com


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