Gold is a hedge against inflation so when investors worry about inflation, they buy gold. When buying physical gold, expect to pay a premium over the spot price of gold. Some are backed by gold derivatives, which are like gold IOUs, while others are backed by actual physical gold bars held in a vault. People who buy mining stocks are hoping for capital appreciation whereas people who buy gold bullion are doing so mainly to store their wealth in a manner that keeps up with inflation. In my opinion it's not too late to buy some gold — physical, ETFs or stocks — but buy in moderation.

Source: CBC News July 26, 2020 13:52 UTC