Silver Declining Rapidly, Is It A Good Investment?

I'm no knowledgeable about why is it that the rise of USD makes the silver lower

Well, thats why the price here has gone down. Personally I think having some investment bullion is never a bad idea, and unlike a stock gold and/or silver will never go to $0... I can't decide what I think silver is going to do...

Why does strength of the USD make the price of silver go down you ask...
Well, look at it this way: imagine hypothetically that $1 USD = 2 British Pounds (GBP) and the 'price' of silver is $17 USD/oz, or 8.5 GBP. If the USD strengthens in relation to the GBP so that $1 USD = 1.95 GBP the 'price' for 1oz of silver would be lower in the US but higher in Britain.

That is (in a nutshell) what I mean.

That's not the only case. The supply level of silver actually dropped as the large silver producers, India and China decided not to sell in the international market for a couple of years (if I read it right somewhere), hence reducing the supply available. That doesn't mean that other countries are not ramping up production levels, in particular Russia is trying to increase production at this current high silver prices.

I cant agree more with Eaglefoot. One of the most difficult things to do with any investment is to divest yourself from the emotions surrounding it. If one looks too closely at the day to day moves of a market, you lose sight of the big picture. To compound this you generally have to take into account where you get your information from. I am becoming more skeptical by the passing day as to the motivations of the financial press. An hour watching CNBC is like watching a pep rally.

Look at the headlines of the last week. In one fell swoop, the US gov't just doubled the national deficit with the Fannie/Freddie bailout. How will that ever be paid back? It is easy when you have control over the amount of money that is produced. The problem though is that the dollars being created lose their value dramatically, particularly when held up in comparison to something tangible and somewhat rare.

In a few years time we will look back on 17$ Silver and 925$ Gold as bargains.

Whooooaaaa Nellie !....
1 oz $5.00 gold piece "back then" in the 1800's, only bought $5.00 worth of goods. Now a 1oz $5.00 gold piece will buy you almost $1,000.00 dollars worth of goods. That's all I meant with the comparison and "increments" historically.

Well.....demand will be higher because of the amount of people in this world increasing every 50 years or so. 50 years ago the U.S. and planet Earth didn't have half the population we do now. Demand WILL increase with more people and more technology to find various uses for it.......is all I meant really I guess.......
And no, I would never suggest that "prices are based on historical perfermance".......there are new uses for old materials ALL THE TIME. Something may come down the pike where massive amounts of silver, for example, are needed for the world to use on it and the supply isn't there to meet it maybe ....
Or a major superpower falls like the Soviet Union did and it took Russia many years to come out of it....they still are trying.
Economic woes or huge world wide disasters......or just simple ol' industry inventing something new......
Okay....I'll stop now....

gx series, Do you really say "aluminum" in Australia? Or was that for the benefit of our American cousins?

Temporary investors in gold or silver and people playing "the market" will ABSOLUTELY LOSE THEIR KISTERS !!.....That is an up and down rollercoaster ride that can "tank" for a few years and then "dramatically rise" for a few years.......NO ARGUEMENT FROM ME ON THAT ONE !
But past "your" lifetime.....and in terms of many many many decades later, for your decendants to enjoy, the gold and silver Great-Great Grandpa aquired 80 years ago ?.....Yeah...I'm cool with that and confident that it'll be just fine !!
"Investing for your retirement".......no.....not a "safe" bet.....but 50, 100, 150 years from now......yeah....it'll be waaaaayyyy up IMHO !