I understand that having your gold stored from an online service provider means it's easier to trade and means it is more liquid. How about you guys? would you rather have it stored or have it owned physically in your possession?
Both. I built my physical stack first, then started building a holding at GoldMoney.com (which is also physical, but you only own a share of a 400 oz good delivery bar, unless you have more than 400 oz, in which case you can have a 400 oz bar registered in your name). Physical in hand is the ultimate insurance (if you don't hold it, you don't own it), but you have to take care of your own storage/security. The GoldMoney website does a good job of explaining the many benefits of that kind of service, but they include geographic and political diversification, low premiums and storage/insurance costs, gold/silver swaps, etc.