If you're looking for short term profit, you shouldn't be investing in gold.

Physical gold more expensive by 20%?? Could you give an example? If you're referring to physical gold that can be withdraw from bank in paper gold accounts (e.g. CIMB), it's around that figure. Doesn't worth it and it's a blatant ripoff. Local goldsmiths shops are ripoffs too.

Physical gold is definitely more expensive that paper gold because of the costs of making it + some profit and usually not that ridiculously more expensive that paper gold (depending on the type of physical gold and from where you buy it).

If you're into physical gold, you should buy :

1)Gold coins -
Coins minted by Government mints with face value and is legal tender (e.g. Malaysia's Kijang Emas, Canadian Gold Maple Leaf, American Gold/Buffalo Coin, Australian Gold Kangaroo, Chinese Gold Panda, Austrian Philaharmonic,etc.

2)Gold rounds -
Same shape as coins but they can't be called coins because they're not Government minted and does not have face value and is not legal tender. They're minted by private mints. Each private mints have their unique designs and serial number. If you prefer this, make sure to buy rounds minted by internationally recognised mints. e.g. PAMP Suisse, Johnson Matthey, Sunshine Mint, Royal Canadian Mint, Perth Mint, etc..

3)Gold bars -
Same as gold rounds except that they come in bar shape.