From KWN today:The London source also discussed the silver shorts:

“If silver holds for a few hours above $25.50, they (local traders who have been invited short) will just capitulate. You could see a $1 move in an hour if their is a race for the exits. Above $25.50, the locals that are short will literally get margin calls and will have to exit their shorts and it could become disorderly on the upside.

The jaws are closing on these shorts. The silver market is underpinned by everyone who is waiting in the wings to accumulate, that is why you saw the extraordinary buying yesterday off of the lows which continues in today’s trading.”

There was also mention that the industrial users of silver are close to losing faith in the banks which have been telling them there are no problems with silver supplies:

“The industrials, when they see that their is tightness or delays in shipping, will then go out and stockpile silver so their assembly lines are not shut down. We would then be talking about potentially tens of millions of ounces required for delivery to these industrial users in a short period of time. The banks have told these industrial users for years that there is no problem with silver supplies. When these industrial users lose faith in the banks, they will move right away to secure stockpiles.”