Physical Bullion Demand On Fire

Let me give you the Dealers prospective.

The reason most dealers didn't have a large inventory of 90% when the price dropped is that for the last 4 years we haven't been holding what we buy.

What I mean is that most dealers buy at a price below spot and, cherry pick it, then sell the vast majority of the rest to a refiner or a bulk buyer; like Silvertowne.

The days of retaining what you buy as inventory are mostly over. Most dealers are afraid of being caught with too much silver, and losing money when the price drops. Like it did.

So when the panic buying started most dealers just had a small percentage of on hand stock. And that percentage was based on current, pre-drop, buy levels.

I concur that there is probably a lot of propoganda out there about a silver shortage to both drive up the price, and drive up business; while having a ready made excuse to drive up premiums.

No its what the metals sell for just like it always has been.

Kendalls response gives a good insight. There are 100s of reasons why large premiums are currently in place and not a single one includes that the physical price is somehow entirely independent of spot