Physical Gold has it's own benefit which paper Gold can not match. Like quick liquidity. If you possess gold at your home then in case of emergency you could readily liquidate gold and it is globally accepted.
* It is true that physical gold needs protection, and you're responsible for that. So you take all measures to protect it (insure it).
* Physical gold could be carried in form of jewelery as well.
* Purchasing Gold from GoldSmith could be pain in countries like India and customer could feel exploited.
Paper Gold solves problem of security. When big companies are offering paper gold they back up it as well.
* Paper gold is much better for investment purpose. easy to purchase and desolve as well.
* you could access your paper gold via internet(from anywhere).
* You don't have to worry much if you have invested with reputed company.
Both of it has advantages and disadvantages like mentioned above which user should know and aware about that.
Depends on your purposes to purchase gold, whether to store it at home (backup plan, long term investment or jewelry)
Or purchase paper gold for trade purpose and safety way than put a huge amount of gold at home and the risk of robbery.
I prefer to purchase physical gold and save it at home in case of emergency, just in case for something I need.