Suppose you have faced a major tragic accident and you have no funds except an emergency fund. Then will you pay for the medical expenses with gold? Or will you keep going from shop to shop to sell gold? You may be making confusing comments about emergency fund without understanding the definition of emergency. When you need immediate money and you have only one fund left, then that fund should be called emergency fund. Gold cannot provide you with immediate money.

So the only currency for emergency fund is fiat money. Only fiat money can be used immediately. Even the emergency fund should be kept in a place from which you can easily use it immediately. In this case, storing it in a bank can also be a mistake. Keep the emergency fund close to you so that you can use the emergency fund at the touch of a button.