So what you are saying is that you own the gold but you can't...

So what you are saying is that you own the gold but you can't have it. You have an electronic certificate that says the gold is yours but you can't verify it is anywhere or in a physical form..................

Hmmmm, sounds a tad like one of those places which sells multiple fractional reserve shares in a couple of bars and will redeem them in cash.
I appreciate the nuances of the modern crypto world however this is just another smart business set up.
It is a digital payment system that uses a debit and credit accounting system that is supposedly tethered to a store of physical which you can't see or verify and therefore very close to a fiat currency in electronic form.

In my humble opinion it is a good idea but if you don't physically hold it, you don't physically own it.

Please correct me if I have misconstrued the business model.