If ever there was a low point to buy silver in this run-up, now would be the time. High $16 range right now.

Silver has dropped dramatically in the last few weeks due mostly to profit taking and people calming down about the economic conditions. But should people think that the worst is over and start pulling money out of precious metals and other commodities?

Well I don’t know about you but I don’t think the economy is ready for a huge return to glory. Housing is still slumping, the dollar is still weak, and the Feds are looking towards inflation and recession talk. That doesn’t sound like a huge turnaround to me.

On top of that, world economies continue to grow with China and India leading the pack. Silver, used in many applications, not just for fancy jewelry, will continue to be in demand while the worlds mining companies push to keep up with it.

That and silver ETFs still buy more and more silver making less supply on the open market for those countries to purchase.

Buying silver now is still, in our opinion a good bet. Be cautious of spikes and look into precious metals ETFs and mutual funds to increase your position.