Dollar Cost Averaging
 

Please explain what this is.

Re: Dollar Cost Averaging
 

At several, equallly-spaced times you invest roughly the same amount in dollars in a security or commodity. The idea is that you buy more on the dips and less on the peaks -- because you're always buying the same amount in dollars -- and you avoid getting caught up in emotional overbuying or underbuying. Given the erratic short-term nature of every known market -- expressed by some as the efficient market hypothesis, which says that all local fluctuations are just noise obscuring a sensible long-term trend -- dollar-cost averaging can be shown to be a nearly-optimal investment strategy.

If you think you're smarter than more than half the investors out there, and that short-term fluctuations follow a grand plan that you understand, you should not dollar-cost average.

If you spend $1000 once each month on silver, that's dollar-cost averaging.

Re: Dollar Cost Averaging
 

here you go jhwatts,

As Drill said, you don't time a market with DCA. You invest steadily over time, and your average price will be better than if you were to go all in and sit on it is how the story goes. Works great in bull markets, and when you can't cough the ching all at once.

Re: Dollar Cost Averaging
 

In the simplest sense, if you purchase 1 oz of .999 fine silver for $14 at one point in time and then another later on for $16 your purchases would be dollar cost averaged to $15 per ounce for the two purchases.