Welcome to Flyertalk.
You are not doing anything wrong.
As Craig says, you need to be on an overbooked flight.
Virgin Atlantic are not like the US carriers, they do not automatically upgrade their frequent fliers to fill the seats up front. They will only offer op-ups if they have to because they have oversold economy / PE.
This policy has been in place for many years, and in the long run has saved me a fortune. In the 'old days' I used to chase status with VS, they used to have special events for Gold Card Holders and would often give comp op-ups. For several years, I was upgraded on almost half the flights I took.
Now, the only real perk of having a Gold card is Clubhouse access when you are flying down the back.
Nick