In the same way that the equity market is not a reflection of real world economic reality so the silver spot price is not a reflection of the physical supply market. The two markets are divergent. Imagine that someone starts advertising slabs of beer for $10, but when you go to get them there is no beer, but only signage that states they sell beer for $10. The market for beer is now set at $10. However if you want to actually want to enjoy a coldie you will have to pay $50 for the slab. That is the difference between spot price and physical price. Notional value and physical market value.
