The concept of scarcity of silver is connected with the idea of peak silver.

Since we had pass through peak silver, the silver mining industry is enroute for a drastic supply shortage.

The only real problem here is, the mining production didn’t enter terminal decline after peaking back in the 90s and 2001. What happened is that it kept moving upwards. Hence, silver bulls are hoping that we will reach peak silver for the second time in 2015.

There are a lot of people who do believe that the market is being manipulated because it’s less liquid market compared to gold and other commodities. The sales and leases of Fed when it comes to silver and the naked short selling of this precious metal on Comex has led to the shortage of this metal’s physical supply.

Don’t Believe in Everything You Hear (Research)

Simply speaking, the belief is, the central banks as well as corrupted financial system have produced more claims of paper silver than there’s bullion to accommodate all of them. There’s not enough amount of silver to back up all paper claims. Thus, it’s being expected that when silver market collapsed and its price ceases to suppress, there is going be a surge.

But, claims regarding disconnection between physical demand and prices of paper silver are unfounded and the culmination of the lack of knowledge on how future market will work out.