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<p>[QUOTE=&quot;Cloudsweeper99, post: 1224157, member: 3011&quot;]&quot;Ben Graham exhorted the stock market participant to first draw a fundamental distinction between investment and speculation. In Security Analysis, he proposed a clear definition of investment that was distinguished from what he deemed speculation. It read, &#039;An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.&#039;&quot;</p><p><br /></p><p>I&#039;ll go with Ben&#039;s definition.&nbsp; I don&#039;t think speculation vs. investment has anything to do with the asset class involved.&nbsp; It has to do with the depth and accuracy of the research and expertise brought to bear on whatever is under consideration.&nbsp; So one person may be speculating on commodities while another is investing in them.&nbsp; It all depends on the circumstances and not confusing the two.&nbsp; I thought gold was a pretty good investment when it was $400 and silver when it was $7 since they were baiscally selling below replacement cost and far below their historic high prices.&nbsp; I still think both are pretty decent speculations at current prices in the middle of a bull market.&nbsp; The same goes for businesses.&nbsp; At one price and set of conditions a business may be a speculation, and at another the same business may be an investment.[/QUOTE]</p><p><br /></p>

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