Looks like the dealers will have to start paying a premium to the public to obtain silver if they want to stay in business. Overall, it’s a bullish situation and could be explosive if the public figures out that the silver ETF’s are not their friend. Only physical buying will end the corrupt paper market which has around 250 times the amount of silver than there is actual silver.
There are billions of dollars (face) of junk silver that can be melted into bars, rounds, and American Eagles. Expensive to melt and process, so they won't do it unless they have to. The big dealers like APMEX can pay mints to mint new rounds and bars a lot cheaper than they would have to pay the public. The mints can get all the silver they need without going to the public.