Today I added to my gold position by buying gold in form of "Xetra Gold" bearer note (Frankfurt Xetra: 4GLD). The other paper position I hold is ETFS Physical gold (Frankfurt Xetra: VZLD).
Currently I don't hold real physical bullion as that has larger spreads and requires more laborous buy/sell procedure. Basically you have to go and get the gold from the dealer and then drive it to safe deposit box in bank vault. Paper gold is much easier compared to that, but it has also risks and holding costs that real physical gold does not have. Currently I favor physically backed paper to the real thing, but that may change..
Here is an interesting gold related article I read today:
Seeking Alpha: A. Ash: Emerging Economies Buying More Gold