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<p>[QUOTE=&quot;medoraman, post: 1369891, member: 26302&quot;]Do you know for a fact that each month silver will go up indefinitely? If yes, DO NOT DCA. Now, if you don&#039;t, I will show you the difference between DCA and simply buying X ounces a month. </p><p><br /></p><p>Pretend silver goes from 33 to 50 to 100 back to 50 then to 33 in a period of time. Also say Inflexion has $100 a month to spend, or he wants to buy 2 ounces a month. Now, under DCA his weighted average cost would be:</p><p><br /></p><p>(33*3)+(50*2)+100+(50*2)+(33*3)=$45.45</p><p><br /></p><p>and buy buying 2 ounces a month</p><p><br /></p><p>(33*2)+(50*2)+(100*2)+(50*2)+(33*2)= $53.20</p><p><br /></p><p>DCA is good if you DON&#039;T KNOW where the market will go short term, and is preferable to buying equal quantities per month. There are other reasons psychologically as well, but I don&#039;t mean to rehash this argument with Cloud again. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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