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

LSG vs. Price of Gold

[Allthewaydown]

By now we all know full well how strongly this stock responds to the price of gold. Every bad gold day we get trashed. However it is worth noting what has happened in September. The stock hit $1.15 when gold crashed through the $1278 support level on Sept 2, but since then we are recovering from every hit. We lose ground on the bad gold days, but overall gold has declined from 1278 to 1215 and we keep bouncing back to $1.15. We are holding against a falling gold market, which is extremely good. Every "good" gold day we see a buying frenzy. Obviously if gold continues to collapse it will hurt us, but right now it is like a coiled spring. Any sign of movement back into the ETF's, and the thing will go ballistic. As long as we continue to hold ground in a falling market we are in excellent shape.