1. Data Feeds

A data feed is a mechanism for users to receive updated data from multiple sources. It requires structured data and a centralized data management system to collect, normal­ize and integrate multiple data feeds. Major providers include Thomson Reuters, FactSet, Capital IQ, and Bloomberg.

Data feeds are used when:

Data feeds are suitable for applications that require very low latency custom data. They are generally used in financial institutions like investment banks and trading firms.

2. Widgets

Widgets are small programs that can be in­stalled and executed within any HTML-based web page. They are limited to very specific functionality and are pre-programmed to be used “as is.” Major providers include Kitco, WidgetBox, and Coininfo.

Widgets are used when:

They are used to improve the interactivity of web pages by providing functionality such as price tickers or charts.

3. Api/Web Services

An API (Application Programming Interface)allows your application or service to talk to other products or services. API-based architectures give businesses the ability to connect to a market data vendor and fetch data. The coding effort required is minimal and web services need only a few lines of code to integrate. The major provider of cloud-based web services is Xignite.

Web services are used when:

Web services are a viable solution for appli­cations that don’t require ultra low latency. Web services allow you to fetch data in a few hundred milliseconds without setting up a centralized data management system.

3. Investing in Precious Metals

Precious metals have tremendous liquidity and can be bought and sold without problems. Platinum, however, is less liquid than gold and silver.

Historically, precious metals have been a good hedge against inflation. People also tend to invest in metals when they are looking for alternatives to equities in bear markets. Demand spikes during recessionary periods, as investors are very uncertain and wary of the equity/bond markets and are looking for safety as well as a tool for diversification.

For these and similar other reasons, many investors allot a portion of their portfolios to precious metal assets. Like other investments, the gold/silver market prices go through tremendous cycles. Prices moved from about $140 an ounce in early 1977 to more than $1900 an ounce in late 2010. When confidence in other assets causes their values to plummet, precious metals often do well. But as a result, investing in gold has been especially speculative, as you can see.

Physical Ownership

Physical ownership is one way of owning precious metals. The drawback of physical ownership is that there are often high premiums that must be paid, in addition to the safekeeping and insurance costs and delivery fees. If the drawback of physical ownership is unappealing, the metal can be kept at the issuer’s secure location.

Whereas precious metal mutual funds and securities may yield income, physical ownership will not. Because no dividends or interest is paid through the physical ownership of precious metals, the only way to profit from owning them is through capital appreciation.

Because gold, silver, and platinum are commodities, their values can fluctuate greatly. And, as commodities, they are not covered by SIPC.

Pool Ownership

When owning precious metals through pool ownership, you own the metal, but do not take physical delivery of it. This is generally the least expensive method to own precious metal.

Securities & Mutual Funds

Many investors choose to own securities that deal with precious metals, especially in the mining and processing aspects of the industry. Still others invest in precious metal mutual funds.

Precious metal mutual funds provide professional management and diversification within the precious metals sector. While these funds are managed by professional portfolio managers, they are more volatile than the S&P index. In addition, their prices move daily with the price of metal, but not always. Finally, their value moves proportionally, both up and down, more than the value of the metal itself.