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

RE:Next Week......reply to OSSYW11

[ossyw11]

Brads...

I know Rick - and he may have another agenda to suggest a $1,000 gold price. 

Nevertheless, if gold does get to that level it will be a panic paper selling frenzy (like we have seen) and then a rapid technical rebound.  Let's all keep in mind the old saying "he who has the gold makes the rules" and since we all know there is a order of magnitude physical shortage of the metal (compared to paper), even when the commodity dips or spikes, those events do not translate into the actual delivery price for the producers.  They have the luxury of being selective in terms of the cash exchanged for this very-in-demand asset. 

In fact, if producers don't like the price, they can borrow against the stockpile at less than 1% interest rates and wait; or they could forward sell production at higher prices; or they can sell derivitives; or an number of alternative methods to generate cash and ultimately play the same paer game the boys on wall street are playing.

Having gold stockpiles, puts LSG into an entirely different category of player - and I hope Tony has secured some good financial advisors to help him through a $1,000 gold scenario.  Let's enjoy the week... JRMJ