When we speak of trading, it means the purchase and selling of a product. What most traders and investors will do is purchase gold in bulk, hold on to it for some time, and then sell it when the price of gold is high. This is how one aspect of how physical gold trading works. The traders will purchase gold from the supplier at a price since they buy it in bulk. After which the trader will sell it to different gold dealers and jewelers at a standard price in the market. This allows them to profit and earn bigger returns from their investments.
The price of gold is not permanent, it change every day. There are instances wherein the price of gold goes up and there are instances that it goes down. You have to be knowledgeable about physical gold trading and be smart enough to deal with this business. You have to be constantly alert and aware of the price changes in gold. Physical gold trading is not an easy business.