For as long as there has been coin shops around it has been relatively easy to walk on in and pick up a few ounces in one of a few forms.(bullion bars, rounds, or or government backed coins) When doing this the coin dealer would take the spot price of silver and charge a small premium to cover his cost of running his shop and in turn if you were to go to the same dealer and want to sell some silver he would take the spot price of silver and short you a small premium, again keeping the lights on and giving himself a cushion for change in the market.
But to today if you go to your neighborhood coin shop provided he even has any silver in his store you will most likely hear a price of five to seven dollars over spot. And if you ask why the premium is so damned high he'll say something like all of my suppliers are out right now.(they don't want you to know that average people selling silver at under spot prices are there biggest suppliers)
If they buy from a wholesaler then they pay a premium.
A bunch of silver is definitely going to an assortment of industrial uses but in these uncertain times people that have silver are just holding on to it real good.
With the stock market experiencing some mini crashes every few weeks and the American dollar in the toilet I don't blame them.
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