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Physical gold market disconnecting from the paper gold market

Gold breaches 1000€ per ounce today.
As I'm writing this it slipped below the magical 1000€ mark, but I doubt it will stay there for long.  Gold is making new highs against all currencies day after day.

What puzzles me most is why none of the "official" commentators see this as a major sign on the wall that the system is in serious trouble.  Money is flowing on a massive scale out of the fiat currencies into gold.  The physical gold market can't really absorb this amount of money as it is so tiny compared to the forex market..  Luckily most of the shift is flowing into paper gold and not into the physical gold market or it would explode. 

But noticing there is a growing premium between the closed end fund PHYS which guarantees that money invested into the fund is redeemable in gold and the GLD ETF which doesn't offer that guarantee, shows there is something rotten in paradise.

I read even somewhere that people are trying to capitalize on the divergence between the two funds that basically both invest in gold and therefore should not trade at a premium to one another.
Seems like a mistake to me.

If PHYS is trading at a premium compared to GLD, it only means that physical gold market is trading at a premium to the paper gold market, showing a potential shortage in the physical gold market. 
If that shortage becomes continuous, which seems to be the case looking at the above 3 month chart, it has the potential of a time bomb waiting to explode.

The growing divergence could lead to a situation where physical gold isn't available at any price. 

Although a nice prospect for the holders of physical gold it would essentially mean the end of fractional currencies and might be the start of a global collapse of all these currencies.   

Gold, the ultimate extinguisher of debt, will no longer have a conversion rate with the major currencies, rendering them worthless. 

Scary prospects !!!!