Is it Time to Buy?

Is it time to buy silver? What’s the downside risk? What’s the upside potential?

Gold and more importantly silver have been hit hard over the past few weeks, no doubt from profit taking off the last huge climb that precious metals saw. But now that silver is retreating back to previous years levels (around $7 spot price) is it time to buy?

Demand on silver is still strong but with the recent climb in silver prices mines and mints have begun turning out more and more to meet such demand. But will the demand keep rising. From everything we can see in China, the answer is yes. Chemicals, jewelry, computer parts, ornaments; all of these things are consumer goods that people buy when the economy produces money for them to buy them with. Well their economy is producing money. Too much in fact.

With silver spot prices dropping below $10 and ounce we think you should begin looking into the possibilty of adding a little shininess to your portfolio. The downside risk seems to be leveling off and diminishing. We don’t forsee silver prices dropping much below the previous highs of $7 and the world has already this year seen prices jump above $15. In the next economic hard times look for silver to surpass this years highs and top out above $20 an ounce!