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Joseph Russo

Joseph Russo

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating…

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Silver Lining

Today, the entire world is succumbing to varying states of seizure as national populations continue to digest the fatal effects of the global financial crisis in 2008.

Here in the US, which is one of the last nations on the list scheduled for an outbreak of widespread trauma, a growing number of people have begun questioning seriously the reliability of financial markets, paper currencies, politicians, and governments.

The vast majority of US citizens are far too busy with day-to-day struggles and obligations to comprehend adequately the pending consequences that are most assuredly destined to manifest from the recent wake-up call in 2008.

It is now approaching five years since the 2008 crisis, which nearly brought the US to the brink of total collapse and martial law. As we approach the end of 2012, those in power continue to do absolutely nothing to repair the structural flaws responsible for our recent brush with total catastrophe. The writing is on the wall.

In fact, the extraordinary measures taken by TPTB (the powers that be) to kick the can yet further down a dead-end road, have only made the entire system that much more vulnerable to the next inevitable shock.

Considering the looming fiscal cliff in the US, the surge in global unrest, unsustainable budget deficits, astronomical debts, unfunded future liabilities of governments that cannot possibly be honored, with each passing day, the odds for experiencing another systemic shock grow exponentially.

In light of this very real and disturbing situation, how might people protect themselves from an out-of-control social system of twisted political economy that is growing ever vulnerable to massive disruptions, global conflicts, civil unrest, severe shortages, rampant inflation, and the very real possibility of total chaos and collapse?

Historically, amidst these types of one-in-a-century events, there exists an extraordinarily heightened level of both risk and opportunity. Alongside a legion of well-respected economists and financial analysts, we share with them a strident conviction that one of the major opportunities currently at hand rests in the aggressive acquisition of historically accepted forms of hard money, which everyone in the world recognizes as gold and silver.

Despite the growing levels of mistrust and uncertainty permeating throughout societies across the globe, there is always a silver lining to such dislocations. The key to determining which side of the pending wealth transfer one finds oneself is largely contingent upon the prudent measures one takes in advance of acute disruptions and the inevitable shifts in paradigm that follow.

For a host of fundamental reasons, silver in particular, continues to present one of the greatest opportunities of all time.

Following a price high that registered just shy of $50 dollars per ounce in April of 2011, many pundits declared that a bubble in the silver market had burst. This inspired us to share a contrasting perspective on reality.

We based our convictions then as well as today, upon the clear evidence of an insoluble arithmetic quagmire culminating from decades of egregious political expediencies, which shall continue propelling the world rapidly toward a highly disruptive rebalancing of monetary and fiscal accounts.

The ongoing chart analysis of the historical price record itself - despite the known existence of excessive contrivances and suppressive interventions, adds further confidence to these convictions.

The following is a silver market update from the original presented back in May of 2011, which summarized various technical aspects of the historic price record that continue to maintain their general integrity.

In this update, we will endeavor to provide a contextual reference comparison of what was suggested back in 2011, what has transpired since, and what we believe is most likely to occur out into the future.

Silver Lining (part-II)

The large chart below represents what has transpired since the $48 pivot high back in April of 2011. We have inset a smaller chart, the original from part-I, dated 4/27/11 for visual reference and comparison to the current outcome illustrated on today's chart dated 10/19/12, which as an aside, is the anniversary of the '87 stock market crash.

Silver Monthly Bars

From such an expanse of historical monthly prices spanning in excess of 30-years, back in 2011, it naturally posed great challenge to perceive exactly how quickly sliver would arrive at its primary degree 3-wave crest. Those not familiar with the Elliott Wave Principle may click here and here for a brief background and basic summary.

Take note of how well horizontal support held near the 26.70 level. Though the (4) wave downward consolidation may complicate further still, there is good reason to believe that its bottom is intact at 26.07. If this proves to be true, then the odds increase that silver will trade above 50, 80, and quite possibly well above $100 dollars per ounce before it ever sees fit to revisit the 26 handle - if at all.

We will later show evidence that the move up from the recent June 2012 low of 26.07 was impulsive, which if correct, would imply that this low would hold for a long, long time.

Observing the Outcome on the Exploded Monthly Charts

Although pausing in May of 2011 at a price low of 33.48 then rallying sharply toward $45.00 three months later, by June of 2012, silver had suffered a prolonged corrective decline in excess of 46% over a period of 14-months.

On a magnified cutaway chart in the May 2011 article, we inferred nearby support at or near $35. Upon striking a print low of 33.48 shortly thereafter, silver reversed course heading higher for the following two months, and was trading above $40 by August.

After August, the rally failed. Following a massive decline in September 2011, it became clear that all bets were off for an immediate run-up to the minimum 52.58 target, which is the level at which our price target window for primary wave 3 opens.

Silver Lining Cut-a-way comp

With the unfolding of a classic falling wedge pattern, which is a rather bullish pattern, especially on such a large scale of amplitude and time, it became clear to us that we were witnessing a significant basing pattern to the anticipated intermediate (4) wave terminal.

In 2011, defying to heed the observational tendency to anticipate alternation in the nature of corrective moves within a larger impulse, we nonetheless deemed a swift sharp and singular decline to a (4) wave terminal near $35 plausible. Despite its plausibility, that assumption proved incorrect and the market chopped lower for an extended period.

We illustrate this 14-month falling wedge pattern in the large weekly bar chart below. Inset within the chart in the upper left, is the very same chart projecting a decline toward a (4) wave base as we presented it back in May of 2011.

Prior to the price action proving our assumption for a brief sharp decline to the (4) wave wrong, the sharp move up to what the current chart is labeling a smaller degree -b- wave crest at 43.82. At the time, that rapid recovery and advance from the 33.85 pivot low appeared rather promising in keeping with our projections for a brief and sharp decline to the (4) wave.

Within a month after registering the 43.82 high however, the price plunged well beneath the 33.85 pivot low, and the corresponding c, d, and e, waves noted began to unfold.

Silver Weekly Chart

From the 2012 low of $26.07, a stunningly bright silver lining has arisen in the form of a smaller degree five-wave upward advance to the recent high at $35.44, which was a rather impressive 36% move up from this recent low.

The current pullback over the last two weeks is providing an excellent second chance to add to physical holdings, or begin acquiring a 10-20% physical stake relative to ones entire net worth before this high-speed train leaves the station for good.

Silver Short-Term Daily Chart

The daily chart below illustrates the shorter-term price action. From the recent high at $35.44, the trend has been down for the past 14-sessions, setting a print low on Friday at $31.94.

Take note the market is trading just above speedline support, and the chart implies defense of a 31.68 downside price target with further support fibbed-out at 29.56.

The buying opportunity is here and now, and all the way down (if you're lucky) - to the 29.65 level. Once the minor degree 2 wave bases, it is onward and upward, and off to the races.

Furthermore, we have illustrated an upside price target of $47, which shall remain defended so long as the market maintains closes above the falling green trendline trajectory so noted. In addition, above the market north of $35, we illustrate a resting 10-pt buy trigger, which is contingent upon on price breaking out above the trigger, along with sustained trade and closes above this triggers falling green trendline so noted.

So what would kill this extremely bullish opportunity? In the larger sense, nothing - because no matter what paper prices convey, one still needs to have a 10-20% portion of ones net worth in hard money in the form of physical gold and silver.

In the strategic and technical sense however, a print below 28.37 would mark a (ko) or key overlap violation of the first wave up at subminuette degree. The second sign of failure would occur upon a print beneath the 26.07 low, although this would simply imply a more bullish shift-right and lower level terminal base for wave (4).

Since fifth-waves tend to extend in the commodity arena, and that Silver is at or nearing a minor degree 2- wave decline, one must not ignore the possibility that Silver's intermediate (5) of primary 3 wave can easily extend well north of $80 per ounce.

It is Time for All of Us to Wake Up

If all of the above is not ample motivation to stack as much physical silver as one can reasonably afford regardless of the paper-contrived price, take a view and listen to the videos and links below. They outline clearly the plausible suppression of price via a massive imbalance of naked shorts that is sure to culminate in the largest mega-transfer of wealth in the history of humankind.

This forthcoming transfer of wealth, which is certain to take place within the next decade or sooner, shall shift massive swaths of wealth from those holding all forms of empty paper promises, and begrudgingly relinquishing that rich bounty to those holding physical silver and gold bullion. For all intent and purpose, the writing is on the wall, and the game is virtually over. This may go down as the biggest fraud in all of history.

There are 100 ounces of paper derivative promises for every 1-ounce of actual physical gold and silver. In other words, just like a fiat currency such as the US dollar, there is virtually nothing of tangible value backing delivery these paper contracts, which are the current means of price discovery on the exchanges. In short, if you wish to take delivery on your futures contracts, it is likely the exchange will offer you cash instead. This translates to an outright default, fraud, and breach of contract.

For each single ounce of physical silver taken off the market, the government supported banksters, under the guise of national security, need to fabricate 100 ounces of paper promises in order to keep the price artificially suppressed.

If you have yet to start stacking , you should seriously consider doing so now before it's too late.

Bill Murphy on the JP Morgan Silver Shortage (Capital Account)


Bill Murphy, Chairman of the Gold Anti-Trust Action Committee delivers his testimony about a whistle-blower in the gold price suppression scheme to the Commodity Futures Trading Commission.


Click here to listen to the entire 38-minute King World News interview with Andrew Maguire.

The Truth is Often Stranger than Fiction Folks - ACT ON IT

If any fraction of this were true, it would imply that at the highest levels of government, and in collusion with international banking cartels, for reasons of self-compromised national security threats, that a treasonous form of international financial terrorism has been taking place behind the scenes for several decades.

Critical Common-Sense Choices in Uncommon Times

In response to the ongoing fallout from the financial crisis, we are roughly mid-way through in preparing a new companion website, which we are calling "Prudent Measures."

Though we will be adding several more pages in the near future, this new companion site provides visitors with a one-stop critical resource menu of highly recommended products and essential services designed to safeguard, insure, and protect each one of us against come what may.


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