Gold has it's color and value all through the ages. In an investment prespective, it is always better to buy gold in paper formats like E-Gold, exchange traded gold or gold mutual funds so that one gets free from the hassles of storage and making charges. The value of gold fluctuates from moment to moment, as it trades on public exchanges where it has a price that is determined by supply and demand. While you don't eat it or drink it, people are attracted to gold. It's been used as a currency because it doesn't corrode, and the material allows for some absorption of light creating that yellow glow. The reasons people buy or sell gold--creating the demand and supply flow--can be pure speculation, to acquire or distribute physical gold, and as a hedge for commercial application. For day traders, the purpose of trading gold is to profit from its daily price movements.Day trading gold is speculating on its short-term price movements. Physical gold is not actually handled or taken possession of, rather the transactions take place electronically and only profits or losses are reflected in the trading account. A futures contract is an agreement to buy or sell something--like gold--at a future date. Buying a gold futures contract doesn't mean you actually have to take possession of the physical commodity. The amount you need in your account to day trade a gold futures contract will depend on your futures broker.