The major banks are recognizing that physical supply is not available. Demand for silver exceeds the ability of mines and recycling to supply the metal. Demand is ~ 1.2 billion oz per year Supply is ~ 1 billion oz per year There have been supply deficits for 5 years in a row, consuming above ground silver in vaults. Demand is still growing, but output from mines takes many years to respond to higher prices. It is doubtful that more silver can be mined. Many of the best high grade deposits have already been depleted. Newer deposits are generally smaller and lower grade ore. The only solution is for price to increase until there is demand destruction.(Wall Street Mav)