Learn more about the Government backed Sovereign Gold Bond Scheme by TMB.
Sovereign Gold Bonds are the safest way to buy and store gold, since it is "E- gold", no physical lockers are required to store it. Bonds are issued by Govt. of India, so it's also the safest way to hold gold. You also get an assured 2.50% p.a. interest every 6 months too.
When you are happy with the gold appreciation you are free to en-cash by selling your gold (bond) on the exchange (on listing in stock exchanges for trading) or redeem (from 5th year onwards). You can also avail a gold loan.
This certainly is the best available form of accumulating gold, say for your daughter's wedding or will come in handy to gift a big piece of Gold Ornaments to your beloved wife on a special occasion in the future. Carries no reduction on prevailing price of gold at the time of early redemption (post 5 years) or at maturity.