South Africa's Minerals Bureau has called for the government to alter the present system governing gold and platinum possession and trading.

According to the Bureau, South Africa needs to deregulate the dealing in and possession of serially numbered, trademarked and hallmarked bullion bars.

Mr Damarupurshad explained to Mining Weekly: "South Africa, the world's largest gold and platinum producer, remains the only major producing or trading country prohibiting ownership of gold and platinum in bullion form."

Ashok Damarupurshad claims that such a move could lead to a relaxation of exchange controls, allowing a gold savings and deposit scheme and establishing a precious metal exchange.

In order to test out the idea, the Bureau has recommended that silver bars and minted gold and platinum bars are used as part of a trial run.

Mr Damarupurshad also made clear that care would have to be taken to ensure that the relaxation of laws did not inadvertently effect foreign exchange control or security concerns.

He pointed to the examples of Turkey, India and China as a means for avoiding some of these pitfalls, by learning from existing "policy lessons".