LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Gold / Silver Fall...Equity markets tumble

[ggoldbbug]

Gold, Silver Fall as Equity Markets Tumble on Credit Concerns By Pham-Duy Nguyen Aug. 1 (Bloomberg) -- Gold and silver fell in New York on speculation a decline in equity markets will reduce investment demand for precious metals. Gold fell 3.6 percent last week when stocks worldwide suffered a $2.1 trillion sell-off. Shares dropped today amid concern that defaults among U.S. subprime mortgages may be spilling over to other credit markets. Bear Stearns Cos. blocked investors from withdrawing money from a hedge fund, and Macquarie Bank Ltd. warned two of its funds may lose 25 percent. ``The stock market being down is contributing to a softer tone in the gold market,'' said Stephen Platt, a commodity analyst at Archer Financial Services Inc. in Chicago. ``Gold benefits from economic growth. A weak stock market tends to raise questions about the health of the economy.'' Gold futures for December delivery fell $2.60, or 0.4 percent, to $676.70 an ounce at 9:30 a.m. on the Comex division of the New York Mercantile Exchange. Before today, the metal had climbed 6.5 percent this year. Silver futures for September delivery fell 1.2 cents to $13.005 an ounce after dropping as much as 2.1 percent. Before today, the price had gained 0.6 percent this year. To contact the reporter on this story: Pham-Duy Nguyen in Seattle at [e-mail] . Last Updated: August 1, 2007 09:32 EDT