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

RE:BUY and HOPE !

[IMgolden]

It's true that gold is a hedge against inflation.  While it is a commodity and used in industry, it's main purpose has always been to be a form of money.  Money sitting by itself never really appreciates in value.  The problem with paper money is that it depreciates in value.  If I keep $1000 in paper money in my sock drawer in 20 years it will be worth much less.  Gold on the other hand will hold it's value (In the long run) and therefore appears to be going up when in fact it isn't.  It's the dollar which has actually dropped in value.  This is why it works well against inflation.  Money printing is something that drives inflation.  The more money, the less the buying power.  There is no question that prices are going up substantially on food and other things, no matter how they work the inflation numbers.

But there is also the matter of how scarce something is.  This can drive up the price substantially.  I seems like a lot of the gold has been sold off to places like China and India by manipulators who are trying to keep the price down.  This is gold we will never see back here again.  Some think China is trying to get as much as they can to have a gold backed currency for their country.  If this is true and I think it is to some degree at least, then this will also be very good for the gold price. 

I agree with you goldhappy.  I am more optomistic then every with LSG.  They now need to get their debt down.  That will help them big time.  I also think and have been watching this stock with the movement of the gold price and every time the price in gold moves up a bit so goes the stock up a bit and vis versa.  If gold gets back up there, then look out.  IMO.