Paper vs. Physical

Commodities prices are getting hammered--including precious metals, because the collapse of the Euro is becoming more apparent, causing the (transient) rise in the USDollar.  Spot prices for gold and silver are plummeting, yet the premiums for physical bullion and coins are widening, suggesting shortages still exist.

One has to ask oneself, why spot prices are dropping, yet supply is still tight, and prices for the physical metals haven't dropped accordingly.  The answer is the paper markets are being manipulated, even in the face of physical shortages.  The margined weak hands are liquidating.  Strong hands are holding and even adding via dollar cost-averaging.