How is it "paper gold"? The gold in your account is physical allocated gold stored securely under your name that can be easily redeemed and shipped to you at any time.

I think there's confusion here in using the terms "money" and "currency" (which is alright, we all do it). Gold (and silver) has been "money" for thousands of years, while the dollar (or any fiat) is a "currency" that may or may not be backed by real money. Just a quick google search clarifies this distinction:

"While money stores intrinsic value within itself, fiat currency possesses buying power bestowed upon it by the government. But this was not always the case. At its inception the dollar was backed by gold and silver, which meant that every unit of currency in circulation was redeemable in gold and silver."

Of course nowadays all the fiat currencies in the world are not backed by anything except the confidence that is placed in them. But gold and silver, by nature of being intrinsic stores of value, are real money. Mike Maloney explains the difference beautifully in this video:
https://www.youtube.com/watch?v=DyV0OfU3-FU

Goldmoney doesn't have to have power to make gold money because it already is. Gold may not be widely used as currency at the moment, but it is easily convertible into fiat so it is very liquid. No fiat currency ever survives, and current ones are all going downhill. So it just makes sense to preserve some of whatever wealth you may have into something that stores value. Anyway, just my 2c.