A follow on post from below.
However, the depleting inventories story was sleight of hand back then. The bankers used the Hunt Bros as patsies and fed the story until they were ready to pull the rug. It was a movement of inventory from one place to another that created the "shortage". The Hunt bros and the public bought more as it confirmed their theory and then lo and behold the bankers changed the rules mid game and the price collapsed. Martin Armstrong mentioned all this in one of his essays.
Remember all those ships full of oil parked creating an oil spike? Same idea. Just google... lot's of links
Sprott used it recently to great effect so much so that his "fully backed" silver ETF was 20% above market value. If you think about that statement then what it means is his silver fund was not fully backed by Silver unless you were willing to pay 20% more for your bullion than it was worth.
Is someone paying ZH?
His three month delays in receiving his Silver fed the story of Silver shortages which Warren duly exposed as probable hyperbole
With the ETF's etc. co-mingling bars in a single vault they can disappear from view (inventory list) for periods of time without physically moving and without an available public daily inventory listing it allows the banks to position themselves for a run in front of news like this. However, if you track the bars (see Warren's detailed analysis ) then you notice previous "outflows" seem to come home. If anything GLD has more gold than they tell us. So what I am saying is this is possibly a bull trap. It doesn't matter in the short term if it is but just be aware they just might be parked somewhere waiting for the price to go up just like those oil tankers. Except in this case by "parked" they are just not listed in inventory and haven't moved a millimeter. Caution.