Why does the sounds on my new iPhone 4s not sound off?

I have this nice new iPhone and the ringing, text, email sounds don't "sound off". I have checked and rechecked the settings but feel I'm missing something here on this function. Any experts on iPhones here that can give me a solution?

Above the volume buttons on the side of your phone is a little switch, when it's on red it's on silent and when it has no colour it's on loud.

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