Silver bottoming watch gets another boost.

Bottom line of this post: I still model that silver is actually already in a new bull market.  My model says that wave 1 up of the new bull peaked in August and that wave 2 down in silver is probably now complete.  With the EW count shown below, wave 3 is now clearly longer than wave 1 both in time and in magnitude.  Importantly, it did not fall below the June 2013 bottom.  At least not so far.  That has left us with an inclining double bottom, again, so far.

If this model Elliott wave count is correct then it should start to move up quickly in the coming days because it will be a 3rd wave up.   3rd waves are where the masses figure out that the worm has turned. The leveraged shorts cover and the leveraged longs pile on.  We will get our first indication that this is indeed the long expected breakout if and when the chart breaks out of the down sloping green resistance line.  That should happen with a big gap up and increased volume.

The volatility in this chart serves as a good reminder of the value of dollar cost averaging into the physical metal.  I have, at no time since the $50 peak, wished that I had sold my physical silver.  I've known that a big pullback was possible and in fact required for the next move up, which I think takes silver to the $75 mark (large 3rd wave is coming IMO).  I preferred to just sit back and wait it out and pick up more silver on dips.  I started buying again a couple months ago and have since loaded up what I think makes sense at this level. 

In the unlikely chance that the con men smash silver down significantly from here, I will buy more and more of it.  I wish it would go all the way back down to $8 so I could really load up.  However, I don't see that as realistic since the metal is already trading below the cost of production.  In addition, stories are now circulating that HSBC, Britain's largest bank and a major metals manipulator, is acting very strangely.  They have been selling off international assets for over a year now and lately they closed the accounts of 40 diplomatic consulates in London as well as the Vatican. 

If I didn't know better, I would say they are preparing for some kind of war or other major "event".  They appear to be pulling in their tentacles so that when bad things begin to happen they will find damage control to be more manageable.  It stinks like banker treason to me.  If war breaks out, fuggetaboudit.  Gold and silver will skyrocket because they are considered safe havens. During wars, international treaties can break down, international investments can get nationalized.  Anything can happen to paper assets.  But physical gold and silver in the vault will be there after any war is over.  Hopefully in that case there will not be too much radiation to have to let dissipate.