People buying gold at $252 in 1999 were paying the lowest real price for gold in a century. They were investors. People buying silver at $4 in late 2001 were buying at the lowest real price in 5000 years. They were investors. You can almost never get hurt buying at record lows when the price of a commodity is below the cost of production.

Speculators on the other hand get smacked on a real regular basis. They depend on more and more people coming into the market. They are speculating on future prices. Regardless of what you think about the future of the US dollar, $1637 gold isn’t a record low and you are not an investor by buying at that price. You are a speculator only.

…read the whole very interesting article HERE