Gold as well has been moving up with the price getting above $1750 for the first time in almost as long. Again as we’ve mentioned previously inflation and poor economic conditions that drive people out of equities usually drive them into precious metals.

The other thing looks like its been strong economic pressure from emerging markets like China. New buyers could spark a drive up in prices. The drive up could happen Because there are more buyers with more money.

Silver will more than likely end up remaining a very valuable commodity, especially in the long run, but the last 7-10 days have been pretty rough. Silver was recently trading as high as $43 per ounce, and now it has dropped to just over $36 an ounce.

While the price has recently dropped, these aforementioned global fears are eventually going to help spike the price of silver back up to levels not seen, which includes silver trading at the $50 per ounce price range and above.

You can look at the recent price drop like this; now is even a better time to get you money in silver. Not only will it protect it, but it is going to probably yield you a nice return in the future as well.

Remember, do some research and make a move to invest in silver. Just because the rice is down some does not mean that silver isn’t still wildly popular, as seen recently with the first week sales of the Uncirculated Silver Eagle.

While most of the popular precious metals declined pretty severely, the good news is that silver actually took the smallest hit. Silver declined modestly on the week, losing $0.66 and has remained in a tight trading range over the past two weeks between $36.22 and $34.68. Those trading numbers are actually pretty stable for silver, especially with the dramatic ups and downs we have seen in silver prices over the last several months.

Precious Metals Price Declines (Week Ending June 26^th 2011)

Gold                 $1,514.75         -22.75 (-1.48%)

Silver               $34.73               -0.66(-1.86%)

Platinum           $1696.00         -55.00 (-3.14%)

Palladium          $739.00          -15.00 (-1.99%)

The recent tumble in price presents a great opportunity for bargain-hunters to buy shares of mining companies that produce the precious metal. There is also news that we reported last week that Portage Resources was looking to open a new mine in Peru, which could mean big things for silver.

Even with the current price drop silver is in very high-demand. It is currently trading as an investment for many, but also as a useable precious metal for big companies. The combination of those two factors has allowed silver to raise an overall 16% this year.

While this is a good time to jump in and buy, you still want to be careful. BMO Capital Markets analyst Andrew Kaip said “Investors might want to hold off buying equities except for the fact that many of the silver producers are trading at attractive valuations considering silver in the mid-$30s.”

Do your homework if you choose to invest. Prices are ripe for Silver Bars and Coins right now, but it fluctuates so much that you need to be sure your portfolio can handle a severe drop if one should happen.

A pretty major sell-off in commodities occurred shortly after the record price due to the fact that exchange operators in Shanghai and New York raised the amount of money required to trade silver futures. We were hoping to hit a nice round number of $50.00 per ounce, but since the record spike, silver now sits at $37.28 as of this posting.

After this heavy sell off that occurred at the beginning of the month, silver now seems to be retracting a lot of those initial heavy gains. When gold prices go up, silver prices go up even more.

While silver may be tied into gold prices some, it is much more volatile, as with every gold increase silver increases even more dramatically, and vice versa.

China isn’t giving the bullish reports (although the china bulls are calling for amazing growth over the past 2 years) there is a slow down on the horizon it would seem.  The stock market is falling backwards, the dollar is advancing and precious metals like silver and gold are falling by the wayside.

Just check out this article about SLV and GLD ETFs. They have been slammed along with the price of silver and gold. Once what was on a tear is now on the decline. So what gives?

Could it be that all the hedge funds, mutual funds, and general investing public is taken profits after a rediculous upswing that cause outrageous ratios that didn’t make sense? PE’s that made 10 years down the road, but really, willing to by GE at a PE of 30? Doubtful.

OK, so we exaggerate.

But honestly, with the worldwide economy cooling, is it wise to take your money out of precious metals? We thing not. We think it’s a perfect time to buy precious metals. Prices are retreating all over the place, because the economy isn’t as great as everyone thought it was. Who cares? Why not get in on some deals and buy silver at these reduced rates while China and India prepare for the growth they promise?

So, is it all money back into previous metals?  Ride the gold train all the way up?  We’re not sure about gold, but silver is definitely still looking good in our minds and remains a buy for many at the current price of $17 an oz.

Historically, silver is no where near it’s non-inflation adjusted price of $50 per ounce, while gold is setting a new high every other week.  So whats the deal?  Will silver finally correct itself or will we see the price of silver take a back seat as the rest of the words markets wait for the economy to recover.

$19 is near for the price of silver and if you want to buy silver, now may be the time to do so. With the jobs market still shaky and earnings reports for a flurry of companies on the S&P 500 due out in the next month, you may want to put a little bit in silver to keep your rear end covered.

Gold, although still rising amid recent selloffs, is high priced and difficult for some to get into. Well, silver tends to follow the trend of gold and you may want to ride the wave. Just look at the chart below at how closely silver follow gold. This is a 1 year comparison chart of the price of ETFs, GLD and SLV.

If you think gold is going to rise, you may just want to buy into silver and watch that price follow all the way up.

While gold is ever stretching towards new highs, silver is still lagging behind. Silver ranged in price from $10 to $19 in 2009, still well, well below it’s highest price ever. $49.50. That’s right, in 1980 the price of silver was 2.5 to 5 times higher than it’s all time high of nearly $50!

Gold on the other hand continues to break through it’s all time highs as world banks stock pile the precious metal to back their currencies and individual investors buy gold to combat inflation, looming around every corner.

So where oh where will the price of silver go? We think up, and up and up. But what do we know, we just write this blog….

Well, it’s not because we have to say that, we’re not analysts, we’re not paid by any of the big silver ETFs, we just like silver! One interesting point that we found in an article over at business 24 – 7 is about one fact.

The fact that silver is the only commoditiy that hasn’t jumped above it’s all time high during this commodity boom. Yes you read that right, every thing else has jumped above it’s all time high but silver. The precious metal silver is behind. And from what we’ve heard (only third hand so do your research) the silver supply is low and demand stays the same or is growing.

So why the low price?

We’re not sure. But it just adds to the reason why you should buy silver.