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Speculation

Speculation is the act of entering into a transaction with the goal of financial gain but also with the risk of loss.

In gold, for example, someone might purchase futures contracts in the hope that prices goes up and the contracts can be sold at a profit.

Conversely, investors in physical bullion tend to "buy and hold" precious metals as part of an overall portfolio including various asset classes. This type of long-term investing strategy differs from speculation.