Mumbai, March 25 -- A majority of the investors in the popular sovereign gold bonds (SGBs) are saying no to premature redemption despite making stellar returns on their original investment.

Investors have encashed just around half a tonne out of SGBs against 14.7 tonnes of the precious metal eligible for premature redemption, showed the Reserve Bank of India (RBI) data as of Monday.

The bonds first issued in November 2015 have a tenure of eight years, but the Centre through the RBI allows premature redemption after five years. Currently bonds issued between 12 May 2017 and 11 March 2020 are eligible for premature redemption.

Market experts attribute this to investor belief that the prices will hit the Rs.1 lakh per 10 gm mark due to gl...