Handlebars
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Why New Handlebars?
Replacement
If the handlebars on your GS were damaged or otherwise need replacement, then aftermarket bars are a much cheaper option than OEM replacement. You'll want something similar to the angle and height of the stock bars, like the Bikemaster Superbike bars, unless you're looking to change to something more agressive or more comfortable than before.
More Aggresive Position
If you'd like a steeper angle, similar to sportbikes, then a more aggresive handlebar is for you. Clipons, either aftermarket or on the US 1989 model, as well as Suburban Machinery bars, will provide this at the expense of comfort. You'll have more weight on your wrists, and a more agressive riding posture.
More Comfort
Higher, less angled bars will give you more comfort on longer rides by taking weight off the wrists. These will also make you sit more upright. The US 1990-current bars are already quite comfortable, but for more, you can find options at Handlebar Risers.
Suburban Machinery
Type 2
The most common SM bars are the Type 2 SV650 bars. A functional work of art, these bars are constructed entirely of TIG welded stainless steel. These bars are a more modern version of the classic clubman-style bars. These can be ordered from Suburban Machinery for $144.95 plus shipping, or on eBay or various other forums such as SVRider for around $90 plus shipping.
Specs for both Type 1 and Type 2:
Sweep: 27.5 degrees
Width: 26"
From Suburban Machinery:
On board member AlphaFire X5's bike:
Type 1
The Type 1 handle bars produce a slightly more agressive position than the Type 2s, 1" lower and .466" further forward than the Type 2 bars. Like the SM2s, these are constructed entirely of TIG welded stainless steel and can be ordered at the same place as the Type 2s, but for $164.95 plus shipping.
Off the bike:
On the GS500F:

On a GS500E:
Bikemaster Bars
Superbike bars
The closeest availible aftermarket bar to the stock bars are Superbike bars. Slightly lower than the OEM ones, they are extremely affordable at roughly $15 to $20 a set from most local cycle shops. They come in both black and chrome.
On board member badguy's bike:
Before:
After:
Clubman bars
Since clip-ons interfere with the headlight bracket, clubmans offer an alternative; they allow very similar riding position without getting in the way of the headlight mounting. Like the Superbike bars above, they can be had for around $20 at local shops, as well as being offered in both black and chrome finishes.
Tommaselli Clubman Bars
Not too many people have used Tommaselli, and the only reason I think of, is that it might be difficult to get them in the USA. http://www.motovan.com offers Tommaselli's, but they are located in Quebec Canada. Even as a person who lives in Ontario, Canada, it can take quite some time to get your bars in. I have used 3 different types of bars from them. This first one, the 247 condor style, was the most aggresive of the bars. You sit very far forward, and the downward angle of the bars made your wrists sore if you didn't have the position just right. Vibrations were astonishing though. No amount of weight (I use bar end mirrors) in the bars could curb the vibes.
The next bar I used (And loved the most!) was the 233 road racing bar. The bar was great - you didn't sit so far forward, the downward angle was easy to manage, and it just felt great. Again though, the vibes were horrible. The 233 road racing bar is discontinued, so don't even bother ordering them any more.
The Tommaselli I have on now is the 284 Condor sport. It is a fully adjustable bar. It is also a little easier to put weight into the bars to reduce vibes, but takes some drilling to get the plugs out. Although I prefer the 233 road racing bars over these, I can ride a LOT more with this bar.
// GSRider
Clip-ons
Clip ons can be fitted to the GS. There are two ways to do this. The first is mainly for track bikes, as it requires removal of the stock headlight mounting brackets. The clip ons are then fitted underneath the top triple clamp. Or you can cut the brackets and re-weld them as shown in this diagram:

The second method is to remove the top plate that has the normal handlebar clamps and lower the forks slightly, then place the clip ons directly above the top triple clamp.

Clip-ons can be had from companies like Vortex and Woodcraft for roughly $120 plus shipping. The necessary size is 37mm.
1989 GS500 clip-ons
Clip ons from the 1989 GS500 can be fitted without modification onto any year GS500. On the 1st generation models (1989 to 2000) there are no issues whatsoever; however, on the 2001+ models the horn button hits the tank at full lock.
Upside down '89 clip-ons: http://gstwins.com/gsboard/index.php?topic=24375.0
Srinath Bars
These were made by GSTwins member seshadri_srinath many moons ago, and are very difficult to find now. A new set of bars is rumored to be in the works.
From GSTwins member ConanLloyd's bike:
Front before:

Front after:

Back before:

Back after:

