I wish I owned a lot of Gold. No, I don't hold any substantial value in Gold. But if I could, I would. I tend to think, others would too. Yea, we work with in established monetary systems but "WE" like gold.
I guess the test would be this, if you have the option to receive a $1000 Dollars in Paper or Gold, which option would you take. I would be willing to state that at least >80% would take the gold as change.
This kind of thought experiment is handy for metals brokers that want to make a sale, but it only really represents a snapshot of a transaction in a micro-economy... It doesn't scale. It breaks down when you go to try and spend $1000 of gold bullion at Walmart, or when Walmart tries to use it to pay for the electric power they use. In one sense Bitcoin presently suffers a similar problem, the economy it can actually be used in is limited without the ability to exchange it for another currency. And, the exchange process itself serves to reduce the velocity of the currency going to-and-from the larger economy vs. the rate at which it can move within a purer Bitcoin economy.
Gold also suffers from the velocity dampening effect of exchanges, limiting it's global economic impact. Some 'serious' economic pundits have proposed ways to overcome this velocity limitation, as mentioned here: http://bitcointalk.org/index.php?topic=5191.msg75669#msg75669
. But this brings it's own problems including a de facto debasement of gold through fractionalization...
I see your point, but not withstanding the extra step in redeeming the Gold, it tends to be safer, although currently slower.
I like: http://www.apmex.com/
for Xchange in precious metals. Suisse Gold is serialized and tracked in sealed containers.
Divisibility is not really a problem, I.E. 24K, 22K, 18K, 10K, etc... on and on.