Dollar-Cost Averaging Quiz

Question 1

What is dollar-cost averaging (DCA) in precious metals investing?

Accepted Answer

Investing a fixed dollar amount at regular intervals regardless of price

Answer

Buying metals only when prices are low

Answer

Buying the same number of ounces each month

Answer

Timing the market to maximize returns

Question 2

According to the content, what was David's monthly DCA strategy?

Accepted Answer

$400 monthly ($300 gold, $100 silver)

Answer

$200 monthly ($150 gold, $50 silver)

Answer

$500 monthly ($400 gold, $100 silver)

Answer

$600 monthly ($500 gold, $100 silver)

Question 3

What is a key psychological benefit of dollar-cost averaging?

Accepted Answer

It removes fear and greed from investment decisions

Answer

It guarantees profits

Answer

It allows perfect market timing

Answer

It eliminates all investment risk

Question 4

How does volatility benefit DCA practitioners?

Accepted Answer

Lower prices mean buying more metal, higher prices mean portfolio growth

Answer

Volatility has no impact on DCA

Answer

Volatility always reduces returns

Answer

Volatility makes timing easier

Question 5

What is a typical conservative DCA allocation between gold and silver?

Accepted Answer

80% gold, 20% silver

Answer

50% gold, 50% silver

Answer

60% gold, 40% silver

Answer

90% gold, 10% silver

Question 6

According to the content, what has been gold's long-term trend from 1971-2025?

Accepted Answer

Gold has risen from $35 to over $3,300 per ounce

Answer

Gold has remained flat

Answer

Gold has declined in value

Answer

Gold has been extremely volatile with no clear trend

Question 7

What is the most popular DCA schedule according to the content?

Accepted Answer

Monthly investing

Answer

Weekly investing

Answer

Quarterly investing

Answer

Annual investing

Question 8

True or False: DCA requires perfect timing to be successful.

Accepted Answer

False

Answer

True