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View Full Version : Speculation or Investment?



shela1153
01-13-2011, 11:56 AM
Most of the time people refer to the buying of Dinar as an investment. I don't concur however, I think it's a speculation. I've come up with what I think is a good explanation. Here goes:

What distinguishes a speculator from an investor?


Speculating has to do with short-term expectations. When you speculate, you hope and anticipate that you will be able to make a profit from the short-term fluctuations in price of a particular thing - a commodity, a cheap stock or low-rated, short-term bond, for example. A speculator wants to make money in a hurry. For an investor, however, a waiting period is of no consequence.

A further difference between an investor and a speculator has to do with their attitude toward price movements in a given market (stocks, options, futures, commodities, currency). When you invest, your objective is to acquire and hold whatever you have invested in over the long-term in order to make a profit. You are willing to ride out the short-term fluctuations in price. The speculator's interest, on the other hand, lies in anticipating and profiting from market fluctuations. Short-term fluctuations in price, for the speculator, represent buying and selling opportunities in the hopes of making a quick profit.

The investment goal for an investor is to achieve realistic and reasonable profit over a time frame of several years by investing in companies he or she believes to be fundamentally sound, with the potential for long term business growth. A speculator is not interested in the underlying fundamentals of a company, the ****pects for long term growth, or whether or not a stock pays dividends. If you are looking for short-term profits and quick turnarounds, then you are speculating with your money.

I don't know whether you all will agree with me or not but I for one did not ever think to be holding Dinar for the long term. Therefore it was strictly speculative on my part.It has nothing to do with divine intervention or anything of that nature, it is purley about making fast money. I do resent however, that some seem to think that this is a divine gift. It is making money that's it in a nut shell.