Actually gold is a poor material for coins, which is why it was only used for high value coins. Gold's low melting point made it an easy target for adulteration (remember Archimedes' "Eureka" challenge) and shaving, its relative rarity and consequent high value made it more suitable for holding than for exchange.

Coins are primarily used in transactions, as currency, and so have to be durable for many exchanges and of low enough value to be spent on every day items.

As an original "store of value" gold was great, and you're right, notions of gold's "intrinsic value" stem from this archaic use. Given that it is no longer that useful as a store of wealth, its inflated value, an historical hangover, prevents much exploration of actual potential intrinsic values in engineering and miniturization.