Physical gold is a hedge against inflation. If you lose investment value because of inflation, you can recover thanks to appreciation in the value of your gold holdings. You have an option to invest in gold mining stocks to gain more return-on-value than just physical gold. It depends on your overall investment objective; whether you want to grow your investment portfolio substantially on a short-term basis, or you just want a hedge. Physical gold will hedge against a market crash. As an investor you will need to decide between growth and hedge. Gold mining stocks are an investment in equities or in company stocks. Investing in the right mining stocks can fetch you higher returns.