Holding your money in the bank is no longer viable; with world inflation rising to around five per cent most bank accounts offer savers rates below the level of inflation meaning your wealth is being constantly eroded. Effectively you need to be now earning five per cent just to maintain your wealth.

In order to protect your wealth, you need to make sure you invest your money in a way that provides a return of at least the rate of inflation. One way to do this is by purchasing silver assets such as coins, bullion; ETF’s or silver mining shares. However it’s worth remember each asset class has its own associated risk and a balanced portfolio should contain a set of uncorrelated assets in order to minimize risk. The silver prices have risen dramatically this year and many experts predict further gains – whether these gains are sustainable remains to be seen but the fundamentals certainly look strong. There is currently a shortage of silver being mined around the world and that deficit looks unlikely to be filled in the near future.

Most people acquire their wealth through inheritance or work whereas governments acquire their wealth through taxation, printing and regulating money. Owning silver reduces the dependency on fiat currencies mandated by governments. Owning silver, like any other commodity is just one way to protect yourself against rising inflation.

Paper money may well become worthless one day and the only way to protect yourself is by acquiring as much physical wealth, such as gold and silver, as you possibly can. Silver and gold are universally recognized as wealth and have been traded since biblical times. The intrinsic value of silver and gold is established by the free market not by the government’s printing presses. The economic forces that affect the American dollar are evolving. Now is the time to prepare for significant changes in our economic system. It’s important to plan your financial future to ensure you safeguard your hard earned capital against economic factors.

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Of course, one in no way fails to forget that the aforementioned commitment is typically considered playing second fiddle to gold, but the reality of the matter is a group of investment professionals declare that investment in these commodities is actually a smarter move to make. They’ve been used as investment items for as long as proprietors can recollect, and according to chronological data, other items of significance such as futures and bonds have been trailing in rate, but not with these shiny minerals. It’s still considered to be one of the paramount and most impressive commodities. Take notice that its not effortless to procure gold at such low charge due to the better need for it as an article. Some traders are challenged with the option to use either coins or bars as an investment prospect.

The latter proves to be a wonderful selection given that they by no means decrease in value, and can all the time be resold quite easily. The former, however, are not as dependable, but can be invested in for their great aesthetic significance. They can perform as collector’s items that you can show off to your associates. When buying such things, those concerned in doing so must make positive they at all times get their resources from a supplier with a excellent reputation, just in case you might aim to resell it. One detail to take into account is identifying what you desire to put up for sale, be it bars or penny-like set ups (you get what I’m talking about). With that in mind, continually do your research in getting the appropriate dealer so that you will see if the supplies they are selling you are of authentic and genuine quality. At all times remain aware of those dealers who want to formulate a deal with you on cell telephones, as they may intend to scam you on your money.

In the event you require to acquire your hoard back due to a change of mind, they might not be on hand to accept up the phone call, because they are going through the occasion of their lives raking in all the cash from what you’ve just supplied them with. As an alternative, each time rely on a dealer with an actual substantial office, as they may have been taking part in the firm for quite some time now. So, keep in mind to look up respectable dealers online through their website pages, or even ask contacts who impart the same enthusiasm and passion as you, they just might make a high-quality recommendation that you will not be disappointed doing dealings with. silver prices are available daily on the internet.

The first thing to consider is if the items are solid gold or gold plated. The easiest way to deduce this is simply apply a magnet to your items. Gold is a non-ferrous metal and will not draw to a magnet. If your items are drawn to the magnet they are gold plated. Sadly the gold plating tends to be extremely thin, sometimes only a few atoms thick, and the gold content of these items is negligible.

If your gold item does not draw to the magnet, you are off to a great start. Next it’s time to break out the magnifying glass and carefully inspect the item. The Karat rating is usually stamped somewhere on the inside band of a ring or on the clasp of a necklace, but this is not always the case. Some disreputable gold merchants will stamp a 14K gold rating onto a gold plated item. Bear in mind that the stamp is not a guarantee.

If you see a stamp and your item is not drawn to a magnet, then this is a good indication that your item is solid gold. The next important factor that determines the value of your gold is the purity or Karat rating. 24K gold is 99.9% pure while 18K is 75% pure gold (18/24 = 0.75 = 75%). Common Karat ratings are:

24K = 99.9% gold

18K = 75% gold

14K = 58.33% gold

12K = 50% gold

10K = 41.67% gold

The only remaining piece of the puzzle is the weight of the item. Gold and other precious metals are weighed in troy ounces. The troy ounce is part of the imperial units of measure unlike the more common avoirdupois ounce. A troy ounce is 31.1 grams and a standard American ounce is 28.35 grams. You can simply take your items and place them on an inexpensive postal scale. Now bear in mind that your scale will be measuring in avoirdupois ounces and not troy ounces. A troy ounce is about 10% more than an avoirdupois ounce so take your ounce weight and multiply by 0.911 to get a rough troy ounce weight.

So let’s assume you have 1/2 ounce of 14k gold. You can multiply the 0.5 ounces by 0.911, so now you have about 0.455 troy ounces of gold. Now take your 0.455 ounces and multiply by .58333 because your 14k is only 58.333% gold. So you have 0.266 troy ounces of solid gold. Now find out the New York spot market for gold Which at the time of this article is about $1,370 per troy ounce and multiply that by the 0.266 troy ounces of gold in your item. Your gold item should have about $364 of salvage gold in it.

You must realize that it is very hard to buy or sell gold at the spot market price, $1370/ounce for our example. Whether you are selling to a jeweler, pawn shop or internet based gold refiner, they will have to make a profit on your items. They will pay you a discounted amount of the spot price. The amount of the discount can vary widely from one dealer to another. A reasonable premium for the gold buyer to pay is somewhere in near 50-60% of the spot price. This allows the gold buyer to cover their overhead and expense. If you find a gold buyer who will not tell you what percentage of spot they pay, or only offer you 20 cents on the dollar, then you should keep looking.

If you prefer a discreet and safe gold gold selling experience, consider an online gold buyer. There are many reputable gold dealer out there, in order to find one, make sure they video record the inventory of your items. Make sure they give you a chance to accept or reject your offer and make sure they will return your items to you. Choose a buyer who will quote you the price per gram that they pay and choose one who insures their gold return mailer.

Christian Koch is an author and trained economist with over 7 years of experience analyzing and writing about financial markets. His work is published in several places including the Buy N Sell Gold Blog. Check out Buy N Sell Gold.

Prices of gold are touching an all time historical high of $1200 per troy ounce. During the last decade, oil, gold and copper hit an all time historical high. Other commodities also reached levels never seen before in trading sessions. What we are witnessing is a long term cyclical bull market in commodities. Due to a number fundamental factors like the high demand for commodities and limited supply, commodities are poised for a rally that will last for many decades in the 21st century and possibly even beyond.

But this does not mean that the commodity bull market will go up in a straight line. There will be times when the commodities market will no perform very well. This is simply the nature of the commodity cycle. No market ever goes up in a straight line.

Now, let’s discuss the fundamentals that are driving the boom in the commodity market. The population boom that started in the last half of the 20th century will continue in the 21st century. United Nations studies now report that the average number of years to add one billion new people to the global population will just decrease to 13 years in 21st century.

As the global population increases, so will the demand for natural resources. After all people need food to eat, houses to live in and heat to stay warm in their homes during the winters. All this requires raw materials.

Couple this population growth factor with the largest urbanization movement that the world is experiencing. In early part of 20th century only 15 of the world population lived in cities. Now this figure has jumped to more than 50%. More and more people are moving to cities around the world in search of jobs and better living conditions. Urbanization means a high demand for natural resources as city dwellers consume a lot more natural resources as compared to village dwellers. This phenomenon is more pronounced in Asian countries.

Then there is rapid industrialization that is taking place in countries like Brazil, Russia, China and India which is putting a lot of pressure on the global supply of natural resources. As energy resources get depleted, more and more competition will develop between these countries to develop direct access to global energy markets.

One of the major drawbacks with manual Backtesting is hindsight. How to eliminate the hindsight factor while doing manual Backtesting? The trader would advance the chart bar by bar in order to refrain from seeing price action subsequent to the trade at hand. This eliminates trading in hindsight that is detrimental to an objective backtest.

The major disadvantage of Backtesting as compared to automated testing is the significant potential for human error in executing simulated trades and recording performance results. Manual Backtesting is complicated and difficult. It requires a lot of patience on part of the trader.

Additionally the normal range of human emotions and biases that often interfere with actual trading can be a detrimental factor in achieving objective backtest results. Furthermore, it takes a great deal of work and discipline to simulate trades manually over a large data set without straying from the strict rules of the trading strategy.

However, Backtesting manually can provide the trader with the real feel for actually trading the strategy. This provides valuable trading experience although simulated but still a valuable trading experience that no automated backtest could possibly provide.

No matter whether you do Backtesting manually or automatically, Backtesting can save traders a great deal of time and money that might otherwise had been wasted on trading unprofitable strategies. Backtesting whether done manually or automatically can be one of the most important elements of building a solid trading strategy. Backtesting is now an important element of testing a trading system performance.

Any mechanical trading system can be backtested. This leads us to the important question of autotrading. Autotrading is the latest fad especially in forex where the number of major currency pairs is only six and this makes programming autotrading easy. These autotrading systems are popularly known as Expert Advisors or Forex Robots.

In contrast, stock autotrading systems can be big more complicated. The US Stock Market has got more than 50,000 stocks listed with them as compared to the forex market where there are not more than six major currency pairs. This makes programming a stock trading robot a bit complicated. However, during the past decade major breakthrough in computer programming has been made.

Big institutions like banks, corporations and hedge funds have always been taking benefit of these autotrading systems. Backtesting is one of the most important components of testing an autotrading system.

So what type of trading strategies can be backtested and autotraded? Any trading strategy that is rule based and is not discretionary or discrete. These types of strategies are primarily technical in nature, and they must necessarily have rules and criteria that are unambiguous. Backtesting and autotrading are two important components of implementing trading strategies that generally do not rely upon the trader’s judgments or discretion.

Backtesting gives you the benefit of testing your trading system on a large historical dataset. Backtesting allows the trader to determine if a given strategy would have been profitable using past price data, which is an indication of how it might potentially perform in the future. In contrast, autotrading actually executes real trades automatically according to a pre – programmed set of instructions that sets trade entries, stop losses, and profit limits.

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