As someone who holds both physical gold (sovereigns is my coin of choice) and gold in a ETF, I must say for profit taking, I prefer the ETF as I can buy and sell at whatever price I want.
With physical, you have to factor in the premium you have paid for it, and how you will sell it, (which can be a pain in the rear end)
But in saying all that, there is something about holding a piece of gold in your hand.