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I know there are 3 types of gold: block, ingot and nugget. But what can be done with each type?

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To clarify, no: these are not "different types". Different forms would be a better word for it.

  • Gold Ore: Smelt it in a Furnace, and you get an Gold Ingot
  • Gold Ingot: Place 9 in a Crafting Bench to create a Gold Block
  • Gold Nugget: Place 9 in a Crafting Bench to create a Gold Ingot
  • Gold Block: Place 1 in a Crafting Bench and get 9 Gold Ingots

A Gold Ingot is the most widely used item of them all, as it can be used to create tools, armour, and other items like watches and rails. Gold blocks and Gold Nuggets though have less use, as they are just other ways of creating/storing Gold Ingots; except for the creation of Golden Apples

Golden Apples are created by surrounding an Apple by either 8 Gold Blocks (Recipe no longer applicable in Minecraft 1.9) or 8 Gold Ingots. Depending on which you use, can determine what sort of Golden Apple you create.

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    9 Gold Nuggets can also be crafted from 1 Gold Ingot. In 1.8, there are two types of golden apples - lesser is crafted with Ingots, greater with Blocks of Gold. In 1.9, IIRC, greater apples are not craftable, but don't quote me on that.
    – Orc JMR
    Commented Nov 18, 2015 at 3:32
  • Can confirm that "notch" apples are no longer craftable.
    – Moddl
    Commented Nov 18, 2015 at 4:09

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