Is the Paper/Physical Gold Squeeze on? at long last?

Gold prices are currently in backwardation:
http://www.reuters.com/article/2013/07/19/derivatives-gold-idUSL1N0FP1CB20130719

Backwardation means that the spot price of gold for delivery today is more than the short term, 3-month contract for gold.  Simply gold buyers are willing to pay more for gold in the hand today than for the promise of gold delivered within 3 months.  This implies that buyers do not trust the promise of a contract for delivery in the future, even if it is only than 3 months away.

JP Morgan gold in inventory at the COMEX drops 66% overnight to an all time low.  
http://www.zerohedge.com/news/2013-07-19/jpm-eligible-gold-plummets-66-one-day-total-gold-fresh-all-time-low

It seems that JP Morgan is running out of the physical yellow metal.  Where is JP Morgan going to get the physical to deliver to those longs stand for delivery in August?

Let get it on!  This could finally be the month that the paper precious metals markets default on delivery.  

According to the weekly commitment of traders report that Harvey Organ presents the bullion banks are now almost net neutral, the amount of their long contracts equals short contracts.  And, it is the hedge funds that are short.  They are about to get squeezed!