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Gold/Mining/Energy : Gold Price Monitor

GDXJ 114.20

-0.4%

Dec 18 4:00 PM EST

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To: GST who wrote (47964)	2/4/2000 2:15:00 PM
From: goldsheet	Read Replies (1) of 116815

> Bob: good theory -- now look at how options are priced -- you pay a premium for volatility. Exactly what I meant when I described a gold stock as a call option on gold bullion. One can do a Black-Scholes calculation and figure out what the value should be, but market sentiment can cause options to be under or over priced. I think gold stocks were underpriced (which is why I bought them last week) and could/should move back to a more "normal" relation as you suggested below; >What we have now is properly reflected in the XAU. If we > have several days of this, the XAU will shoot up at > closer to the 'historic' norm.

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