'And as a goldsmith, taking a piece of gold, turns it into another, newer and more beautiful shape, so does this Self, after having thrown off this body and dispelled all ignorance, make unto himself another, newer and more beautiful shape, whether it be like the Fathers, or like the Gandharvas, or like the Devas, or like Pragapati, or like Brahman, or like other beings.

In plain words: A goldsmith melts a piece of gold into a newer, more beautiful shape. In the same way, the Self drops this body and makes itself a new and finer form. That form may be like the ancestors, the heavenly musicians (Gandharvas), the gods, the creator Prajapati, Brahman, or other beings.