It isn't clear how much of a buying boost the change will bring.
"[The restriction] just drove buying underground," Lennox said, although he expects buying will become more visible. "Those persons who didn't want to participate through underground buying and didn't want to pay the tax should enter the market."
Gold's decline has prompted analysts to once again trot out the oft-repeated predictions that the shiny metal could fall all the way to $1,000 an ounce.
Read More Chinese unmoved by gold price drop, see it cheaper still
"I wouldn't suggest $1,000, but it may not be out of the question," Lennox said, citing rampant U.S. dollar strength as weighing on the metal.
"We need to see something in other currencies to counter the U.S. dollar and we can't see that coming out of Japan and Europe next year and of course, China pegs [it's currency], which doesn't leave a lot of competitive currencies against the U.S. dollar," Lennox said.
Read More Charts suggest sub-$1,000 gold is likely
To be sure, Paradigm's Dawes thinks physical gold might finally be finding a floor.
"The demand for gold is really out of India and China," Dawes said, noting the importance of European and North American demand has waned. But he expects improved demand from the middle-class in India and China, as standards of living improve there, and as fears of currency debasement persist.
—By CNBC.Com's Leslie Shaffer; Follow her on Twitter @LeslieShaffer1
Clarification: This story has been updated to reflect that the current gold holdings of the Swiss National Bank is about 7 percent of its total assets, following clarification from the SNB.