It is of my personal opinion that nearly everyone who purchased silver in the past 40 years and has been waiting for the price to get back high enough so that they can sell it- has now done so. (minus perhaps the few that purchased silver for the first time during the last week of April 2011 without an understanding of WHY they were purchasing it, and will dump their positions as silver again reaches $50)
I believe that nearly everyone who might sell long-held physical silver anywhere near current prices has now already done so.
This means that the remaining holders of physical silver are those who have an understanding not only of the value of silver- but also of its spectacular supply/demand fundamentals, the global epidemic of QE, the systemic debt issues among all Western nations, the potential collapse of the Euro and the dollar, and the $1.25 + QUADRILLION in worthless derivatives that are the ultimate reason for the entire financial collapse.
The remaining holders of physical silver UNDERSTAND why they purchased their silver, have no intentions of selling it back for fiat federal reserve debt notes at anywhere near current prices IF EVER, and are THE STRONGEST OF STRONG HANDS.
Most will not depart with their phyzz until silver reaches at least $150-$200/oz at a minimum, or before a collapse of the US dollar.
Look for already extremely tight supply issues to come to a head during the next major rally in silver. Demand always increases as the public becomes excited about a rise in silver, and chases the price into the mini-exponential rallies. During the bull market to date- this increased investor demand has been met to some extent with increased selling of long-held silver by those waiting for years and even decades to get out of their silver positions.
The next major rally will not see this source of supply- as it has already been exhausted.
Combine this with QE3 and also the fact that The Morgue will likely NOT be massively increasing silver shorts into the next major rally for the first time of this bull market due to the coming (albeit at least a year out for non-spot month contracts) implementation of position limits for silver- and we are looking at the potential for silver to literally go SUPERNOVA when $50 is cleared decisively.
This is the basis for The Doc's $70 silver call for the end of 2011- as the next rally in silver should be the sharpest and steepest of the entire bull market to date.
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