Spot Price of Silver VS What People are Paying (get comfy first)

So...I keep a bunch of spreadsheets of data I observe. One of them is the daily price of silver versus what generic bullion is selling for (on FeeBay, weekly coin shows, etc). Something I never understood is the "premium" paid OVER spot. Yes, I understand that there is a cost involved in melting and forming the silver, but, isn't that just one of the variables (ie mining, transporting, etc) that all contribute to the price? Why is there this globally accepted OVER SPOT PREMIUM paid on silver??? Granted I am not including numismatic limited items like ASE's and CML's, though, in reality, I don't fully get that either. Demand should drive the price. Yes, I am aware of silver market manipulation. But allow me to give an example. Silver on a given day is trading at $28. However, a generic silver 1oz round is selling for (with S&H) $35-$37 on FeeBay and $30 at a local coin show. I know the difference from the price between FeeBay and the show is accounting for fees and S&H. But if people are willing to pay, lets say, $36 an oz, SHOULDN'T THE SPOT PRICE OF SILVER BE $36???

So what is really going on? Is it really manipulation in paper silver driving the SPOT price down and a HUGE correction in the market is looming because the PREMIUM is soooo much? I read a significant amount relating to metals. I have a very strong background in finance. I am not afraid of a mathematical and/or economics based response.

Here is my idea of what is going on. Back in the day, a person earned 1/10 of an oz of silver which provided his family food shelter and a bit of fun. Not a poor person, an average person. The usual given example is a Roman soldier. The man EARNED his money. So if we extrapolate into the future, and assume the average person/soldier makes $30,000 (please do not get hung up on numbers, this is just relative estimates, I don't know care or need to hear a quoted amount from the census of what the average american makes) which breaks down to 260 working days a year (52weeks x 5days per week), or $115 per working day. So that means an ounce of silver should cost $1,150 in today's currency ($115 x 10). This does not factor in for our fake fiat inflated currency's continually decreasing value. Now granted, the amount of labor and cost that went into pulling an ounce of silver out of the ground back in roman times and the huuuge excavators, economies of scale etc in modern times definitely changes the ratio. 10 men with pick-axes versus 10 men using pneumatic drills and using dynamite and ball mills etc etc etc will definitely produce different amounts per man hour of labor.But I think it is safe to say silver is grossly undervalued.

So this returns me to the topic and the question. Manipulation of the "theoretical paper silver" at some point has to crumble, right? Trading THOUSANDS of times the amount of silver through ETFs and futures contracts than actually physically exists will eventually have to be reckoned by the amount that is physically available above ground, available to mine, etc. Right? Please, someone explain to me how this worls and why. Granted, if you can, I think you are already a VERY rich person and must have some form of crystal ball but I am curious to see an educated persons reply to this. If people are paying $36 an ounce, screw spot+premium....THE PRICE IS $36!