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Gold/Mining/Energy : Gold and Silver Mining Stocks

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To: Zardoz who wrote (310)	6/7/2000 12:16:00 PM
From: russwinter	Read Replies (1) of 4051

The good news is they don't throw away the $54. The eroding time value of the option writes and the gradual diminishment over time of the intango of the forward sales, coupled with the generally low price of gold gives these companies the opportunity to monetize at least part of that $54, if they acted now. The fact that these companies aren't actively buying back these positions (and I don't mean match transactions such as call buys) rather than just delivering production puzzles me. So much so that I start believing some of the conspiracy theorists. But, more likely it is that they are poorly advised by their dealers and counterparties (who have a vested interest in the same trade).

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