This is a classic example of the discussion we had previously and I did state quite simply that in the event of a drop a lot of dealers will simply shut up shop and refuse to trade.
Look at it simply.
If you are purchasing stock at X price, why would you be expected to sell it at under what you paid for it and expect to stay in business?
A sharp drop in spot will simply mean no active trading on physical (even if there is stock present) until a profit can be realised on trades.
Unless you have an extremely quick turn over of stock or very deep pockets, you are largely restricted to your sale price based on what you paid for your stock in the first place.
If 'spot' rises above your paid price to buy the stock in the first place, you can claim the margins as profit.
But if spot falls below those prices you paid and you face a loss, you can simply put up a 'closed' sign under any guise you wish and wait for the price of your stock come within profit.
Hence, regardless of what spot does on the open market, there's a floor price on physical silver and this rush of stores putting up the closed signs are exactly what I predicted would happen.
Let this be a practical example of why I expout the cost average stacking strategy being a better method for the smaller volume stacker than trying to time the dips.
In the event of a BIG dip like we're seeing now, you'll be scratching to locate physical - especially physical following spot in realtime.
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