But the minimum deposit clause remains a strong barrier.
Take, for instance, someone wants to save gold for his/her daughter's marriage.
A product with a higher lock-in would work perfectly well, much like an equity-linked savings scheme (ELSS) for saving taxes or a long-term equity scheme. But, if the latter scheme had mandated that these schemes would accept a minimum of Rs 10 lakh, it would not have encouraged investors.
Of course, if the price of gold fell sharply, the lock-in would be counterproductive, much like other market-related instruments.