You also have to factor in the massive buying from India (the worlds largest source of physical gold demand) and the rest of Asia, as well as the surging bullion demand in the U.S.
To a certain extent their choice is dependent on their budget, or investment capital. Bars are the closest to the spot price of gold, meaning low premiums above the gold value contained. Paper investments. Gold Bars, popular producers of gold bars include Credit Suisse, pamp Suisse, and the Perth Mint. The most popular sizes of gold bars range from 1 gram to 10 ounces, however larger bars such as 1kg or 400 oz good delivery bars also exist. And it is in this area where the bears see particular weakness in the gold story. For years, the ETFs grew and grew, and showed every sign of representing stickier demand than futures. They are the realm of traders looking to profit from knowledge about the price of gold. Paper Investments: Best for Traders and IRAs? Paper investments tend to defeat some of the purpose of investing in gold as a currency hedge or buffer against a financial collapse. Obviously, there are other considerations (such as the structure of the company, the geographical coverage of mining activities, political situations in mining areas, other business activities) but prices are generally correlated to the price of the commodities being mined.