Liberty Star Uranium and Metals Corp (LBSR)

[StrengthenNumbers]

You might want to link the article mentioned.





I did a brief search on Mr. Guarino, and the first page shows a link where he predicts a gold crash back in June of 2009. Maybe he just needs more time, but gold has shot through the ceiling since then.

I personally don't think we'll see a real crash at this point. Things can only fall so far before greedy fingers buy profitable working assets at discount. There is a finite amount of trimming and streamlining businesses can do to support their bottom line after a slump, and then they require working markets, with employment and discretionary income for working families. Banks, retailers, manufacturers and service industries all lose money when the middle class hunkers down and clings to pennies, and so they have an interest in extending credit, expanding, hiring. It starts small, but plenty of reliable early indicators, like scrap and PM's, have been ticking along for some consecutive quarters.

Now QE-3 has been floated on this side of the pond, and just the affirmation that the fed will continue to buy notes if necessary calms the herd, absurd as that may seem to big picture viewers. Bad for the long-term dollar, but supportive of a continued rise in gold and other PM's. I can't imagine that's bad for LBSR shares, although the idea has been floated that our shares will rise to double digits of dollars that are rapidly declining, essentially negating some of our gains. I'm not willing to bet that far against the dollar. Bernanke and Subsidiaries aren't buying those notes because they expect the dollar to be worth less in the future. Any current decline will likely recovered as the cycle opens toward growth and productivity.

How long that takes is the million dollar question...