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Is SLV, the king of all paper silver funds, finally falling out of favor? It certainly seems so. SLV had its third biggest up day on Oct. 4, and despite that, the amount of the silver in the fund fell sharply that same day.

Andy Schectman at Miles Franklin is reporting that this is the tightest physical market he has seen since the depths of the 2008 financial crisis, and physical premiums remain at record highs, confirming he's not just making this up. Back in 2011, when the spot price hit $50, physical premiums were actually below zero, meaning it was literally cheaper to buy coins than shares of SLV. Not anymore.

The physical markets are just now starting to take control away from the paper pushers. And what happens to bullion retailers when the Comex finally breaks? I have an answer that may surprise you.

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