Signs Of High Dollar Demand Emerging

High credit card debt could be stabilizing the money supply, but debt service costs astronomical.

• Gold futures open interest falls again, but spot gold open interest increases by nearly 1,300, all to be delivered today and tomorrow.

• Dollar shortage emerging, double Nasdaq top looks likely here.

• Credit card debt on the rise, potentially leading to defaults and a decline in the money supply.

Gold Open Interest Story Gets Even Weirder

Gold open interest was up 365 contracts yesterday, but 1,286 of that net move was in the February spot gold contract, which will all go to delivery most likely. If you go long spot gold, you buy into the delivery window. That doesn't necessarily mean you must take delivery, but you do have to file an intent to take delivery if you go long spot, and an intent to deliver if you go short. You can then be forced to take delivery or deliver by lottery at any time, so there'd be no reason to buy spot gold unless you actually wanted delivery of the warrant.