By Christopher F. Davis
Wall Street Cheat Sheet
Yes, silver has dropped over 60 percent in value since its (overdone) run up in 2011. But I am of the opinion that silver has now bottomed. We have a solid line of support in the $17.75 to $18.25 area and have only breached this area very briefly. We have consistently bounced off of these levels. As of the time of this writing, silver trades at $19.60. I think now is the time to start acquiring a position. There are several sources of demand.
It should be obvious, but there will always be demand for silver because aside from silver being a precious metal, it also has many industrial and technological applications. Therefore, there will always be some level of demand, but such demand should pick up significantly when the global economy comes fully out of recession. Despite the stock markets in the U.S. setting all time highs, the broader economy is still just limping along. When it rebounds, there will be a spike in demand in many areas. The demand will not be just in coin and bullion form, but also in jewelry, silverware, and dentistry.