By Mahua Venkatesh and Anupama Airy
"You may soon have options to invest in new financial instruments that are linked to gold, such as a possible gold bond.
"With savings rates dropping from 35% about five years ago, the government, trying to boost savings and discourage hoarding of gold in physical form as a speculative activity, is planning to soon come out with attractive paper products including gold bonds, riding on India's craze for gold.
"Though the details are yet to emerge, experts say that in such instruments investors may be allowed to invest cash or offer gold against an assured minimum return.
"At the time of maturity investors are given the option of receiving gold or cash. The funds raised are likely to be used to build infrastructure projects. The government is expected to offer soverign guarantee to notified companies that can sell such bonds and back it up with hedging in global gold markets to assure minimum returns linked to the metal. ...."