Where is the Silver Supply coming from?

[beauanderos]

I keep hearing of industrial users of silver needing to replenish their just-in-time silver inventory. And then you read about the heavy inflows of funds into SLV. And then we learn of Eric Sprott's plans to start up a new closed-end silver ETF. Supposedly, SLV is purchasing tons of silver to match the increase in price. Where are they securing it from? And where do the industrial user's buy theirs from? Are they buying COMEX contracts and taking control of the physical? There is no way SLV could be doing that as their purchases and liquidations have to occur on a daily basis. Are they securing it on an "open market?" Makes one suspect that SLV doesn't hold physical silver and it is all a paper trade. Does anyone know where the silver is being bought and how? The COMEX inventory doesn't show a drop sufficient to supply the increase in "purchased" tonnage by SLV, let alone other silver ETF's, so what in the heck is going on?

[misteroman]

you know whats going on

[egwiley]

Ed Steer often (daily) reports highlights from the CME Delivery Report and I noticed SLV has been taking in millions of oz.s / week during the month of September. I don't profess to know what their physical to paper ratio is, nor would I personally buy shares of SLV (not that there's anything wrong with that), but they seem to be getting more aggressive about backing up the paper.

Here's a link to Ed Steer's Gold & Silver Daily. He puts a new edition out around 6am every Tuesday - Friday. And there's usually a weekend edition too. Good stuff. http://www.caseyresearch.com/gsd/