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<p>[QUOTE=&quot;medoraman, post: 5301172, member: 26302&quot;]I am a strong proponent of DCA if only to force investment action and overcome human failings. However, I am always hesitant on CT because the only times we get anyone wishing to DCA in PM is when it has spiked. We had many such posts in 2011-2012. I wonder how many of them actually continued to follow my advice when prices declined considerably. I bet few to none. That is the problem. If you start, (especially in a period they are historically high), you MUST MUST MUST continue for years after in order for DCA to be effective.</p><p><br /></p><p>This is what DCA is trying to prevent, (and it doesn&#039;t if you abandon it). </p><p><br /></p><p>1. PM really looks attractive at $1900. Its scary out here in the economy, and I am concerned for my future. Maybe I should buy PM. I am smart though, so I will DCA and not buy all at once.</p><p><br /></p><p>2. PM has eased, economy is doing better, I think PM is going down some more so I will just buy a little. </p><p><br /></p><p>3.. Economy is great. No one talking about pm at all, in fact its down below $1200 today. What a loser, it will go down further. I won&#039;t buy any now, knowing I can buy cheaper later.</p><p><br /></p><p>4. Hmm, a economic shock and PM jumped to $1500. Well, I think it will pass and I will remember to buy more when it drops back to $1200</p><p><br /></p><p>5. Major shock, pm spikes to near $2000. Man, it would be a good time to have to PM in case things really turn bad.</p><p><br /></p><p>This is basically 2011-2020. Most people starting in 2011 I am guessing do not own what they wanted to own, and what they do own is way above the average for the period. DCA forces you to buy at $1500 and $1200 when your own mind is talking you out of it. Someone truly doing DCA over this period would&nbsp; own the position they wanted, at maybe a $1400 average. Today that would look good, no?</p><p><br /></p><p>If you are serious, DCA into PM over a decade or longer is a good strategy. I just fear most abandon it when the PM starts to drop.</p><p><br /></p><p>Btw, for those who say PM is not a good investment, I would say to consider this, it is also an insurance program. All of the while, besides economic returns, you also have the security of having a hard asset should you need it. When Venezuela melted down, so did their stock markets. Anyone with 100% stocks in Venezuela had no assets. At least by having silver and gold physically owned that can never happen to my family. </p><p><br /></p><p>Of course stocks historically outperform other asset classes, but can be very risky. I simply prefer to not have all assets in one class, since I never know what could happen. I prefer to own all asset classes, in case only one is worth owning when I need it most.[/QUOTE]</p><p><br /></p>

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