The following appeared in yesterday's Calgary Herald. First indication I have seen of this situation in any "mainstream" publication.

"The tightest physical silver supplies in four years have tipped the U.S. silver futures market into backwardation this week, making near-term prices more expensive than more distant months. Market watchers said that it has been more than 10 years since silver futures were last in backwardation, an unusual term structure, associated with shortage of physical supply. Warehouse stocks of the white metal have dropped to a four-year low on surging demand, while miners have hedged their future production.

Booming demand for silver and record coin sales, and a surge in demand from mining companies to borrow the metal for their hedge programs have led to a squeeze in the physical silver market."