According to Kodak's 10-K, the company, like all the silver users, is in harm's way. And all because of the Japanese inventory model and default. Kodak is way ahead of other companies who use silver, in that they started hedging their silver requirements, for the first time in their history, a couple of years ago, as the silver supply situation became more obvious. Its contracts are held with the big dealers, and are settled for cash at the contracts' end. Here's the problem.
Silver is in a much bigger shortage than palladium.
The names of the guarantors on Kodak's paper contracts won't matter if physical material isn't available. Think two words - force majeur. Take a minute and think of who is behind the guarantee of Kodak's and all the other users' paper contracts- dealers, banks, mining companies sold short for years, and speculators. In the crunch, the only place this group can get real silver in a hurry, is the same place as the users - the market. With many soon to be bankrupt miners, production must fall off, because of the coming price spike, adding fuel to the bonfire.