I doubt silver will go extinct. History repeats itself and although there is some discourse going around that silver is losing it's monetary and "precious" metal value, we have over 2000 years of history demonstrating silver used as currency. Didn't Jesus get sold out for 30 "pieces" of silver?
This recent panic selling bodes well for future prices. Everyone should read Adam Hamilton's article recently posted of the 321gold web site. Panic sell offs almost always result in a doubling of prices off extreme lows within a relatively short period of time. He posits that we most likely are looking at a "V' shaped recovery.
But what do I know? I just keep my fingers crossed. LOL
"How do you fight that?" You continue buying physical silver. That's how. Not fighting it would be to sell your silver and give up. In your words, silver seems to have been "targeted for extinction". Yet you point out that silver is in short supply and high demand. Put two and two together. The PRICE of silver has been targeted. Not silver itself as a feasible purchase for investment. It's obvious to everybody that these prices are merely a blue light special and people are buying with both hands.
Eventually the price of silver will HAVE to climb. Again, "high demand, low supply" are the two perfect ingredients.