Shortage of physical gold

On RT Max Keiser and others are discussing collapse within the USA (I assume elsewhere too) of the paper gold market. This caused by institutions and investors seeking to withdraw physical gold which does not exist to back the paper. It looks analogous to a run on a bank head over heels in fractional reserve.

Apparently, other US investors trying directly to access physical gold are having difficulty finding markets and retail prices are being marked up considerably.

Is Tally likely to encounter problems acquiring gold on the spot market? Else would shortages at that level of trading be reflected merely by price adjusting to demand