Some have asked “Should I invest in gold coins or the gold ETF?” This largely depends on the type of investor and the size of investor you are. It’s the difference between a technical investor or a fundamental investor that will decide the Gold ETF or gold coins. It’s also the difference between the investor with a huge portfolio and an investor with a small portfolio.

A technical investor will look at the charts, supply/demand differences and technical indicators and decide when to buy and then sell gold. Usually the technical investor will want speed and low cost as the main controls for the investment, therefore the techie will usually invest in the Gold ETF. It’s the speed and low cost that the techie will use to pull out a few points in the market. A techie might hold on for as little as a few hours to a few days — just long enough to pull a little money out of the gold market.

On the other hand the fundamental investor will be looking for an option to diversify and even boost the long-term gains in his or her portfolio. The fundamental investor will be in it for the long haul and will most likely choose physical gold bullion instead of an ETF because of the length of holding period. The fundamental investor might also consider the governmental history with gold, the prohibition of gold, and decide holding gold close to her will be a better option.

Other costs to consider is the capital gains tax on the ETF “The government treats gold as a collectible, and thus capital gains on a gold ETF are taxed at a flat 28%, nearly double the long-term capital-gains rates on stocks,” noted Jeff D. Opdyke for the Wall Street Journal. “You also pay the ETF’s management fees — roughly 0.4% — which depletes your account.” These costs eat away investment returns, so a fundamental investor will probably look for other options such as investing gold bullion coins.

The other factor investors will consider is the size of the investment into gold. For the large investors not willing to deal with storage costs and insurance will want to invest in the ETF, while the smaller investors with low storage and insurance costs will most likely choose physical gold bullion — gold bullion coins — as the best investment in gold.