Harborside Inc. C.BUDD

Market

[oilcanharry]

I believe that this sudden strength in the US dollar which in turn is having a negative effect on Gold will not last long. With Mr. Bush just asking Congress for another 27 billion for the war on terror and crude prices pushing $40 per barrel I ask how long can the US economy sustain the pressure and who is going to pay the bill at the end of the day. If you ask me recent events just keep making the case for owning gold and gold stocks all that much stronger maybe not in the next week but certainly over the next year. Even though right now there is inflationary pressure to raise interest rates the US Federal Reserve knows that if they spike interest rates then a whole lot of consumer debt will be defaulted on. The bigger threat to the economy over the next twelve months will be deflation as things begin to slip.You can not keep putting more dollars into the market by way of increasing the money supply and expect the value of those dollars to keep rising. So what does all this have to do with Lakota?. Plenty!! The daily fluctuations in the price of gold especially when it is volatile or has exagerated moves like today, people get excited and tend to make irrational decisions regarding their investments. The price of bullion although it has some role is not the deciding factor when I decide to invest in a exploration company like Lakota.. Instead I look at the prospective properties the company owns, the management team and their experience and ability to develop the properties to the production stage. I will evaluate who the companies Joint Venture partners are and what do these partners contribute and is there an avenue to raise the necessary capital to properly evaluate the propeties and continue to grow the company. In Lakota's case I believe the answer to all the points is a strong yes and the only ingredient that is missing right now is a little time to put all things together. I personally do not invest in companies like this for a return of 10,20 or 30% per cent I look for for much higher possibilities and I mitigate my risk factor by asking and answering the questions mentioned above. Well run companies will rise to the top even in tough markets and at this price today gold is still very profitable. Thats my two cents worth for today