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<p>[QUOTE=&quot;medoraman, post: 1324043, member: 26302&quot;]Jason, as others have stated he is somewhat trying to baffle you with %$#&amp;(*^. Like a lot of Finance and Economics, what he is saying concerning trades is true, but doesn&#039;t mean it answers the question. </p><p><br /></p><p>Undoubtedly if you apply leverage you can increase returns, but you also increase your risk proportionately. I would counter the general inflation hypothesis that the &quot;official&quot; inflation number is a contrived number by an interested party, (the Fed), and does not track well a basket of goods. You are trying to track a basket of hard goods, not goods and services, so hedging versus inflation does you no good. Using leverage against PM also does you no good since such positions have time elements, and you believe you are right, you just are not sure WHEN you will be right. Time is the other half of all economic actions, and its not enough to get the movement right, you have to have the time right as well. Therefor, investing in physical PM allows you to have a lower risk position that is nearly immune to timing of the expected movement. </p><p><br /></p><p>He sounds very much like a trader. They have attention spans of a nat. All major movements in the economy have been missed as a group by traders, they are only interested in today, this week. Next month is a far off time horizon to these people. Because they only deal with short time frames, reversion to a mean, long term dilusion of currency values, etc mean nothing to them, they physically cannot process it since its against everything they see every day.</p><p><br /></p><p>I do not believe Buffet is god like many, but he does have wise sayings. Remember that he said he would not have made it in Finance if he had lived in NY. His greatest asset is he lives in Omaha, and if he has one good idea a year, and one great one a decade, he is doing well. Traders simply cannot grasp that, so that is why this man is throwing 30 things at you at once. They think every tiny idea they have is important, and cannot grasp how long term shifts to paradigms happen. They simply accept the paradigm they are in until its different, and completely miss the movement. Its like the proverbial frog in a kettle. He never feels the heat increasing since its gradual, so to him he isn&#039;t cooking until he&#039;s well done.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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