Silver was hardly the only casualty: Investors pulled money from stocks and metals in favor of cash, U.S. Treasuries and the U.S. dollar.
But here's the key point: This silver pullback won't last forever, and fleeing silver - or top silver stocks like Coeur d'Alene Mines Corp. (NYSE: CDE) - will prove to be a costly mistake.
As ugly as this week has been - and even if it carries over into this week, or even beyond - this will prove to be just a temporary reversal.
And once it's over, silver prices will "break out" and head for much higher highs.
Europe's Banking Crisis and Silver PricesWeak European banks are driving the current metals price pull back. The European Union (EU) reported Thursday that 16 "fragile" European banks need more capital. They're facing margin calls, much like the U.S. banks were in the fall of 2008.
But someone will come to the banks' rescue.
They'll be fixed when the European Central Bank (ECB) prints fresh batches of money and pushes them into the weakest institutions.
When that money is released into the system and the extra liquidity is sloshing around, silver will soar to new all-time highs - just like when the U.S. government bailed out banks in 2008, and the "white metal" started a tear that's led to gains of 200% to date.
If you avoid the silver market now, you'll miss out on these significant gains, like the ones headed for Coeur d'Alene Mines Corp., the largest U.S.-based silver producer.
You see, this mining giant is about to bring online some of the largest silver mines in the world. The higher silver prices soar, the more money this miner rakes in.
Simply put: Coeur d'Alene Mines shows all the signs of becoming a future silver king, and is a "Buy" before silver prices take off again. (**)