Let me point few things:
1. There is difference between buying and own spot physical gold versus "paper gold", like GLD , contracts or other gold related ETFs with no real gold back up. But this difference will only has relevance if things in fiat ccy systems, or in global economy or commercial system really turn bad. Then those who have physical will win, but those who have it as a certificate or "paper" won't be able to use it. However until such an end-game scenario the difference doesn't really matter, what's more owning the physical Gold actually costs lot more as you have to securely store it, deliver it, etc.
2. What about the Price? Well the Price is more or less the SAME! It can not be different, as that would be arbitrary. So what one has to pay for buying physical gold is the same price one other pays for a contract or (- costs and management fees charged in case of gold funds).
The real difference in between the two (physical and paper) is the ability of LEVERAGE. That's what confuses a lot of people, and that's why you can never really tell what is the real value or fair Price of Gold as a commodity.
For example Hedge Funds or Banks can open really high leveraged positions thus pushing or sometimes maybe even manipulating Price of Gold in any direction.
The conclusion is even if someone thinks Gold as a commodity in long term should value a lot more than now, we can not deny the trend of the Price, and actually we can not see where and when will end. No one should buy Gold just because it "looks cheap". Buy when you are more certain about it will get a lot more expensive: means when the trend reverses.
Daily: Still , picture. The idea of buying at channel low was ok, but we haven't yet seen a real follow through as Price got stuck in a triangle. If today it close will be higher then it will have a good chance to break on the upper side bringing some further short term pull back. 1195-1205 is the Key zone now.
4 Hrs: Nothing special here, looks rather sideaway. As you see Price should break and stay above upper key level 1170-1175 to have chance for a counter trend move. Lower key level is 1148-1150 (and 1135 as local low)
p.s.: Swiss Gold referendum is getting closer. If anything, I will be rather a buyer of Gold until end of November, as I doubt speculators will be strong and brave enough to push it a lot lower... who knows how swiss people vote.
If you look at the sizes going through futures mkts sometimes, are really insane.