I have a question for Turdites in the know:
With these new low-low prices, shouldn't people be standing for delivery? Shouldn't there be a massive move to convert paper into physical?
And what happened to those stories I was hearing about six months ago about there not being enough physical silver in the bullion vaults at the big money centers? I would think this next week would clean them out altogether.
It depends upon fear and greed. Do those holding see Silver as the investment of the decade, and want to be holding. Or, did the waterfall the past two days scare the sh*t out of them? I think part of the drop was the EE using everything to prevent people for standing for delivery, for the reason you stated above. A CME default would be a bad thing, good for those holding physical, but still a bad thing. Expect more of the same shenanigans to prevent a default.
There maybe this disparity going on at the local coin shop, but the spot prices is determined by the futures at expiration. Sept expiring on the 27th any longs could force delivery to them. But only if there in the money!! A quick look at the chart tells us any one who bought silver after mid february has a margin call so not to many people left long september futures under 30.00.