I have an extended family member that is employed by the mining industry out in the desert. Anyway, this person is currently out of work because mines around the area are shutting down because they can't find enough investment money to fund operations. To put it plainly, the price of gold is now too low for speculators.
To me, this means one of two things: Supply for gold far outweighs demand, and miners are having trouble selling gold for a profit; or if indeed there really is a shortage of physical in warehouses, that shortage in the near term will become much greater, and if prices do actually rebound, it will be a large rebound.
I personally am leaning toward the former. As the global economy is stepping deeper into the recession, demand for commodities is going down.
Anyway, just wanted to give some perspective from the mining community, as limited as it may be. Personally, I'm thinking about stacking a few pieces around this price level.