Golden Star Resources Ltd (GSS)

[capitalkid]

You are absolutely right that owning equity in a mining company is not the same thing as owning physical metal.

However, there is a limit to how much the price of mining stock is affected by systemic market risk and overall market movements.

If stock in mining companies were to crash with the rest of the market then their market cap would fall below book value and would become a ripe acquisition target. Anyone could buy the company and profit from the sale of all the gold mined.

Thus, if gold maintains or increases its price while equity markets crash, shares in miners will effectively have a floor in their share price and actually still have potential to increase in vale.