As Indians, we always have had a soft corner towards gold investments. Traditional ways of investing in gold included buying gold jewelery and storing them in homes and safe deposits.

But is this a really a good way to make the most of your gold investments?

This practice has especially affected the Indian economy by increasing gold imports over the year, which is why the government of India now provides you with opportunities to:

• Own gold without the trouble of physical storage
• Use your existing gold possessions to make income
• Buy gold coins for investments

Read on to find out how you can make the most of government schemes designed for gold.

1. Sovereign Gold Bonds

These are government securities that are issued in denominations of gold. Issued by the Reserve Bank of India (RBI), these are alternates to owning physical gold.

With this scheme, you will earn annual returns on your investment and be owning a certain amount of gold. This means that you can reap the benefits of gold rates as well as interest rates.

These are sold in commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges viz., NSE and BSE as and when the RBI puts out a notification about the same.

Find the details: All about Sovereign Gold Bonds

2. Gold Monetisation Scheme

Under this scheme you hold a gold based savings account. Like a usual savings account, you will earn interest on your deposits, but here your deposit will be in gold. The gold can be in the form of jewellery, coins or bars.

You will earn interest on the weight of your deposits and get it in the form of 995 fineness gold or Indian rupees, as per your preference choice made at the time of deposit.

So if you have broken jewellery or gold in a form that you cannot use, you can utilise it to make earnings through interest apart from the metal's appreciating value. Another advantage is that the gold is securely stored in the bank.

The scheme accepts deposits for short term, medium as well as long term.

Find the details here: How to invest in the Gold Monetisation Scheme (GMS)?

3. Indian Gold Coins

The Indian Gold Coin scheme was introduced as a part of Gold Monetisation Scheme. It imposed a restriction on banks in India to sell imported gold.

This is said to be India's first national coin. It has the national emblem of Ashoka Chakra on one side and the face of Mahatma Gandhi on the other.

They are available in denominations of 5 and 10 grams. Bars or bullions are available in 20 grams.

These gold coins are distributed through Metals and Minerals Trading Corporation of India (MMTC) and can be bought at designated banks.