The committee has suggested introduction of products such as a modified gold deposit scheme, gold accumulation plan, gold-linked accounts, and gold pension products.
The financial structuring of these products will be so done that entire investments need not be backed with physical gold.
There are even suggestions to give incentives to investors who take cash delivery instead of physical gold.
The proposal to increase the role of banks to help investors buy e-gold through their bank accounts will help attract more customers.
At the moment, many customers do not prefer the route because they have to maintain a separate account with the commodity broker.
So is the case with ETFs, where one has to use the demat account.
The most interesting recommendation is a gold pension plan, where households will deposit their idle gold with banks and get it back in instalments in the form of a monthly pension scheme over the next 20-25 years.
This will work like an annuity scheme.
Axis AMC's Anand feels in the foreseeable future, investors in the yellow metal would eventually move to financial instruments.
It could happen if gold were to perform worse than other instruments.
As Tekchandani puts it, this is much like land investment, which has a formidable physical presence. But as an investment (not consumption), it could make little sense.
"If inflation were to go below the bank rate in the next decade, the value of gold would come down very sharply. In fact, I would not even suggest too much of gold as a financial instrument," he adds.