More evidence that silver has or is very near a long term bottom.

Still watching for a bottom in the metals to occur very soon.  I still think that SLV has one more small wave down but I would not be surprised to find that it has already bottomed.  The multi-year support line was clearly tested and held in what I still think was wave 3 of C down.  If that held then it is unlikely that a small 5th wave will have the power to break down through it either.

What's interesting is that silver is here near the bottom while the Fed is now talking about tapering again.  so those who think tapering is going to be bad for silver might get an interesting surprise if silver does not take another dive based on that news. 

The end game approaches nearer each day.  The economy is not picking up as Bernanke hoped.  And I mean both in the US and Europe.  Since we are mostly one big connected debt Ponzi we need Europe to pick up so it can buy US made goods.  How are IBM and other multinationals going to perform with unemployment in fairly large European economies sitting at over 25%?  But Bernanke has loaded the central bank's balance sheet up with a bunch of worthless US debt and continues to pile it on at the rate of tens of billions of dollars per month.  As interest rates begin to rise, the bonds become worth less.  This can threaten the solvency of an over leveraged central bank like ours.

And the fed hasn't just been buying treasuries.  It has been buying housing debt as well.  When interest rates go up, the home prices will go down just like the treasury bill value will.  In the case of homes, people will stop paying their mortgages at some point, just like many did after the housing bust.  Government can go ahead and make it a terrorist felony not to pay your mortgage (like they seem to do with anything else they don't like these days) but at some point you can't squeeze any more blood from the turnip and the ridiculous level of police state laws that are in place will collapse either of their own corrupt weight or as a result of armed revolution.  I don't hope to see it but history shows that it is not impossible in these cases.