I would have really loved the idea but having gold as emergency funds is not it at all .when an emergency happens you can't used gold to attend to the situation immediately, rather you have to convert to convert it to fiat by selling it before you can be able to attend to whatever that may have crop up which is not good since emergency situation may require immediate action.As a result of this gold is not a nice option for emergency funds since it is not liquid..No doubt gold is a store of value but it can't be used to attend to urgent matters since it is not liquid making it not be accessible when needed and not suitable to be as emergency funds.Fiat should be used as emergency funds should be  accessible to avoid unnecessary delays incase of emergency situation.