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Liberty Star Uranium & Metals Corp.

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Message: Markets

EXTRACT (with emphasis added) -

This bull is unwinding at a slower and more moderate pace than the 70’s one and the correction, so far, hasn’t been as quite as severe as the 70’s. I remain convinced that the gold bull market is not yet over and the mania phase with the greatest profit potential is still ahead.

A multiple of 6X from the current price would put gold around $7,000 before this bull market is over. With projected leverage of 2X-3X from best-in-breed mining stocks, the potential exists to see your investments go up by a factor of 10 to 20 times!

Of course, this assumes a repeat of 1980 and you will have to sell near the top, but it helps to give some perspective of the potential gains that could be ahead.

Another bullish factor for gold is that the current price is below the cost of production for many mining companies. Just yesterday, Allied Nevada filed for Chapter 11 bankruptcy, and there is no doubt that others will soon follow. Their profit margins have been wiped out, they have no cash flow and the capital markets are not willing to risk throwing a lifeline.

The pricing mechanisms of the gold market are clearly out of whack when you can purchase the finalized product for less than it costs to dig it out of the ground, transport and refine it.

http://goldstockbull.com/articles/gold-drops-towards-2014-low-what-next/s situation cannot last.


"10-20 times" your investment applies to top ranked producers. Explorers who meet with success over this this time will do exponentially better than that.

As to LBSR's present situation, I continue to be stunned by the relative lack of volume considering the amount of stock outstanding. One day soon, I think, we will see volumes at 10+ times these levels, and on climbing prices.

BTW, the company is strangely quite. This could suggest they have to be, because they are nearing an important announcement.

Note that I said "could suggest", I can't know.


Mar 12, 2015 01:29PM

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