Liberty Star Uranium and Metals Corp (LBSR)

[StrengthenNumbers]

For those speculating on runaway gold...





The fundamentals are fairly simple. Gold rises against the dollar, and rises with economic uncertainty. Just the mention of QE-3 and the dollar dilution it implies pushed gold near 1.6K this week. Lots of euro debt supports gold against stumbling currencies. There is no simple or quick solution to any of this.

Also consider that Dow and S&P numbers are still inflated by a weak dollar and the tailwind of QE 1 & 2. The recovery of lost ground back to Dow 13K was a given with corporate restructuring in 2009-2010, but plenty of folks who rode that wave have since taken their chips off the table to ride out the larger market post-stimulus, myself among them. Much of the "recovery" was a facade painted bright green with federal ink. Now it's sink or swim. Dow 10K will not surprise me given the conditions and outlook.

None of this is going away soon, and in fact, there is a p*ssing match in Washington throwing fuel on the fire of economic uncertainty. Gold can easily see 1.8-2K if we stagnate or recede over the 3rd and 4th quarter. I personally fear gold much over 3K, as it implies an extended period of stagnation, or the warm-and-cozy specter of a hyperinflation cycle, neither of which is good.

But either supports a continued rise in gold prices and the correlated rise in LBSR valuations. The timing is great if we can get the claims proven. It's high time to attach some serious numbers to all this science and speculation.