Hard to explain but I will try my best. Depends on what risk you are willing to take. Gold goes up 50%. you make 50%, vise verses ( farely safe) gold drops 50% again you have a 50% loss. Mining company profits will jump higher than 50% if gold jumps 50%. If gold at $1200 goes down $50 percent and if it takes $600 to produce an oune of gold company makes no money. Shares are worth little or nothing. Eventually company runs out of money and the value is zero. On the flip side if gold doubles the gold itself doubles but the mining company profit more than doubles. $600 cost of production but know $600 profit plus $1200 more. $1800 profit total. Stocks value should more than doulble.

Review

1. Physical gold safer, return or loss will be less

2. Mining company higher risk and return.