Technicians look at “the weight of the evidence”(I believe it was Stan Weinstein who used this as a tag line) to use as many indicators as possible to confirm a trend or possible trend change.

Detectives and prosecutors too, build their case by following and adding up the clues. I have recently posted about the Bifurcated Silver market in an attempt to explain why the silver shortage is real, but not so obvious.

The readily availablity of plenty of ounces for stackers, at local coin shops and online dealers, with currently reasonable premiums, might lead some to the seemingly obvious conclusion that silver is abundantly available. However, that piece of the overall silver market is quite small.

Not necessarily in the total holdings of all stackers silver hoards, but rather to the amount they buy each year as a percentage of the total silver acquired by industry globably.

We have known that for at least the last few years, the amount of silver demand has exceeded new mine supply annually, at an increasing rate. That silver has to come from somewhere. It has been mostly from any above ground inventories held by anyone and everyone, particularly the large silver ETF’s.

So as more and more physical metal gets drained out of their holdings and shipped to India and China mostly, the ETF’s and exchanges like the Comex, have replaced physical silver inventories with paper IOU’s.

At some point fairly soon, those industrial buyers are going to face a shortage. It will be compounded when those believing they have physical, find out otherwise. Only then, will the retail market also seize up when stackers rush to get physical and dealers and LCS are completely drained as well.

Some of the recent clues are, the US Mint not selling silver Eagles to meet demand as they are tasked to do so by US law. The Royal Canadian Mint basically halting the purchase of silver from their suppliers under the guise of decreased demand and the 10-15% premiums for silver traded on the Shanghai metals exchange, versus the quoted spot price on the Comex.

I believe the clues add up to a very strong case that the day of reckoning, is close at hand. Do you have all the physical silver you want in hand, when the financial system seizes up?