Placer gold is gold that has eroded from lode veins or deposits. The nearer you are to a vein or deposit the more likely you will find flakes, pickers and nuggets. Fine pieces of gold will travel miles in high, fast water. The old timers would trace these small finds up stream or up slope to the original gold outcrop or source. Advantages of small scale placer operations include: 1. Placer claims require less expensive equipment. 2. What gold you find if any is in your hand