Gold makes sense only for those who have no access to or trust in the financial system. Gold is best viewed as an alternate currency. One must remember how during the demonetization, there were stories of housewives who secretly squirreled away large amounts of cash. There was even one who had kept more than Rs 10 lakh safe from a do-nothing husband. That’s the kind of person who could have done better with gold instead of cash. It would have maintained value better than cash, and as it turned out, would have been safe from being demonetized.
This is an extension of the "bad times" reason for keeping gold. In the last 100 years, many parts of the world have undergone some kind of an upheaval that has led to a breakdown of society and institutions. In these circumstances, physical gold is a currency that can survive when paper currencies do not. It’s essentially a currency which is somewhat better, in some ways, than modern currencies.