The supply/demand numbers are not presented clearly so it's easy to misread the imbalance. Since I've been researching s/d for gold and silver I looked at the appendix to understand what they were presenting. The 736 Moz is mine supply only( 70 % of supply), you also need to add gov't sales, scrap and hedging to get about 1050 Moz supply. The demand is the same at 1050 Moz because of the manner in which the Silver Institute calculates them. Exact details are found at:

http://www.silverinstitute.org/supply_demand.php#demand

I've tried tracking down s/d for gold and silver at a number of sites such as CPM, GFMS and WGC. The Silver Institute works with GFMS to get their numbers. They all essentially zero out the s/d numbers for each year so it's difficult to tell if a physical shortage is occuring with their data. The CPM site has similar s/d numbers but they also present the annual trading volumes, which for silver is 95 Billion oz or almost 100 times the annual supply. Clearly the paper market is not connected to the physical market, but it is unfortunately the price setting mechanism. The key risk here, as pointed out in the article you referenced, is the day will arrive when the traditional large purchasers of silver cannot get stock for manufacturing,fabrication or minting. I haven't found a source yet who tracks this type of information but that appears to be the only way you can truly determine if a physical shortage is imminent.