> When the bank goes bust there's insurance on your deposits

Usually it covers only limited amount, not full deposit. In US it seems to be generous $250 000 but in other countries it is much lower (e.g. just about $20 000 here).

> gold is practically hard to work with and barely functions as an inflation hedge

And deposit interest rates are often below inflation in developed countries.

And gold costs money to store, i.e there’s an interest rate charged to you. It’s value does change though — in positive in negative directions that don’t correlate to inflation or an underlying monetary fundamental. Because it’s not money or a money equivalent.