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

RE: RE: RE: MONDAY ---SHOULD BE EXCITING

[digger144]

YourNadir....

You bring up a good point but I do not believe it will work out that way this time.  For the Gold Miners that is, those that have assets in the ground and are present/near term producers.  They wlll become the "safe banks" to go to!

You are correct about the correction in the Base Metal Mines, this is already in progress and picking up steam.  For example, Teck Resources (TCK.B) it put up a red flag about a month ago.  Since reaching it's high of $47.00 on or about April 6, 2010 it is now sitting at $36.00.  What a red flag!  We must recognize the signs!  This is quite the haircut and Teck is a great barometer of market conditions and the over state of the economy.

What is really interesting is that as this decline began the Gold Miners did not follow, in fact they are firming up and appear to want to head higher!

What I believe we are looking at, is not a market crash but a long awaited market correction, it is just too far ahead of it's self....the fundamentals do not match the market place.  We just have to look at the Canadian Banks to look for an answer and direction.  The investor behaviour is totally irrational and the share prices of the Big Five are acting as if nothing is wrong and all is well!  Give me a Break!  I have taken a position in T.HFD which is a good instrument to short the Canadian Financials, it is normally used for a short term trade but I believe it is time to take a longer position to take advantage of the hit that the Canadian Financials will take....30% hit at least!  We did not and will not escape the market and worldwide correction.

In my opinion what we need in addition to all the programs that have taken place is a stabilizer and I truly believe that gold will be that instrument.  We must get back to reality and back to the basics of economic behaviour and standards.  What has happened over the last decade is totally ridiculous and changes must be made.

Just how high gold will go is anyone's guess but we know from history that it will reach a high that will not hold before it will stabilize and find it's place.  The high will be a good time to take the exits and wait it out!  Greed will set in and it will go up much too high and too fast and traders and speculators will play it for all it is worth!  A bubble will form and will pop but I believe we are not even close yet...the signs are not there...when we begin to see anything with the mere mention of gold in it begin to rise then we will know that we are close to the bubble burst.  We are far from that!

Big money is telling us something and we better listen.  Money is begin to flow into the bullion market and that will be all good for producers and near term producers such as LSG.  LSG has no debt to speak of and the future is bright and what they are doing is finding more and more of the yellow stuff that will be in great demand worldwide.  They will have not many places to go to store their wealth! 

Central banks have become buyers once again and that is telling us quite the story.  Countries that were off of the radar in terms of gold buyers are coming to the market place and more will follow.  Wait until investors start to call in their physical gold in order to feel it and touch it and control where it is stored....may be even bury it in their back yard for safe keeping.   Too much paper gold out there and that game will soon come to an end and align itself in a more reasonable hedge ratio.

Digger144