Business

by Keith Weiner

Zero Hedge published an article on Canadian Bullion Services (CBS) last week. Other sites ran similar articles. The common thread through these articles, and in the user comments section, is that CBS is committing criminal fraud. Or, if not, then it’s a conspiracy by the Canadian government to confiscate gold. Terms like fractional reserve and re-hypothecation were dusted off for the occasion.

I don’t know anything about this company other than what I read that day. I am writing today to make a different point, not to address or defend CBS.

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In all the recent excitement over Valeant's dramatic fall from grace, investors may have forgotten the "last" alleged mega fraud, one which also involves Bill Ackman but on the other side of the trade, namely Herbalife, which the Pershing Square head has alleged is nothing but a massive ponzi scheme. Ironically it is the stock of Herbalife that has soared in recent years while that of Valeant has tumbled.

Donald Trump – Bad For Dollar, Good For Gold?

Donald Trump's emergence as the Republican frontrunner and possible future U.S. President is causing some gold and investment analysts to suggest diversifying into gold according to the Wall Street Journal.

Donald Trump - Gage Skidmore via Commons.wikimedia.org

From the WSJ:

The other winner from Super Tuesday could be gold.

While Asian stocks continued their longest rally since August overnight, led higher for the third consecutive day on the back of Japan (+1.3%), Australia (+1.2%) and China (+0.4%) strength, European stocks have as of this moment halted their longest rally since October (Stoxx -0.1%) and U.S. index futures are little changed.