Noun
- The process of thinking or meditating on a subject
- A judgment or conclusion reached by speculating
- An investment involving higher than normal risk in order to obtain a higher than normal return
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Richard Hall Speculation II...
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Richard Hall Speculation I...
This fine art print was reproduced on the highest quality paper to capture... More |
...In finance, speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum.Graham, Benjamin, and David Dodd (1951). Security Analysis. McGraw-Hill Book Company. ISBN 0071448209. Speculation typically involves the lending of money or the purchase of assets, equity or debt but in a manner that has not been given thorough analysis or is deemed to have low margin of safety or a significant risk of the loss of the principal investment. The term, "speculation," which is formally defined as above in Graham and Dodd's 1934 text, Security Analysis, contrasts with the term "investment," which is a financial operation that, upon thorough analysis, promises safety of principal and a satisfactory return.Graham, Benjamin, and David Dodd (1951). Security Analysis. McGraw-Hill Book Company. ISBN 0071448209. Read full entry
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- 1.Speculation - Wikipedia, the free encyclopedia
- In finance, speculation is a financial action that does not promise safety of ... Financial speculation can involve the buying, holding, selling, and short ...
- http://en.wikipedia.org/wiki/S
peculation
- 2.Speculation Definition | Definition of Speculation at Dictionary.com
- Speculation - Definition of Speculation at Dictionary.com a free online ... Speculation ... Speculation should not be considered purely a form of gambling, as ...
- http://dictionary.reference.co
m/browse/speculation
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How does speculation impact I've heard that oil prices are
higher than they would be in a
natural supply/demand economy,
and that part of this is due
to speculation. What is
speculation? How is it raising
the price of oil? Also, if
people or companies are using
oil speculation to make money,
why don't more people do it?
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Speculation is adding to the price of oil. Oil is traded oin the futures market (30 60 or 90) day contracts. If you called your broker and asked to buy $100k worth of oil in 90 days @ $140 a barrel two things could happen. If the price is below your agreed purchase amount you make the difference, but if the price is above that amount you will lose that amount. A big reason most people are not buying these is they can't afford to. Your liquid net worth needs to be an excess of $1,000.000. Future contracts are generally traded in amounts oif $100,000. If you want to make money off oil just buy stock in Exxon Mobil. You don't need a million bucks cash and they won't be losing money anytime soon. |
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What is the latest speculation At one time there was
speculation that silver could
reach prices as high as 200
dollars an ounce... though I
never actually believed that
prediction the general belief
that prices reaching a hundred
dollars an ounce were widely
accepted. Now I no longer see
such optomisim among
speculators and in fact I
cannot seem to find any
reports where somone wants to
make any predictions at all.
Anyone else heard anything?
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"Precious metals" in general are a 'hedge'. Since (allegedly) they have integral value, one only invests in them if one believes the stock market is about to tumble or fail. Since every aspect of daily life in the "West" is now inextricably linked with the World Market, there is no place for 'precious metals' in the thinking person's portfolio. If the Stock Market collapses, the entire economy collapses. If the economy collapses, having a dozen bars of pure gold will be of little or no value; what you will want to have is FOOD or WATER or SOAP or ASPIRIN! For about $200 you can buy a pound of silver, or about 1500lbs of flour. Which do you think will be more useful to you in the event of an economic collapse? Precious metals trading is a useful tool if you are an international bank, but it is of no value to "regular folks", unless they make their living convincing others they should buy precious metals! |
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What are your thoughts about I've been hearing some
opinions about speculation.
Some blame it for the current
economic crisis. Others I've
heard say that it should not
be regulated. What do you
think? Should speculation be
regulated? And how much do you
think it has hurt our economy?
Just want to hear what you
think and to learn more about
this issue.
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Speculation is just another word for gambling. People like to gamble. It makes little sense to regulate it, beyond assuring that people really understand the risks they take. It does not appear that speculation is the cause of the current mess. The problem with mortgages has been the agents were being paid to produce anything and so they produced anything, instead of good investment grade securities. As for oil, it is pure supply and demand issue. Speculation has probably lowered the cost of oil, not the other way around. It provides liquidity in what would otherwise be an illiquid market. Liquidity lowers prices, but you cannot see the lowering because you have to see a liquidity crisis to see the alternative. The banking crisis is from the drying up of liquidity. The speculators have left and there are not enough investors to pick up the slack. |
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