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To: Robert Rose who wrote (71873)	8/4/1999 6:26:00 PM
From: GST	Respond to of 164684

NEM -- lets see how it does. Cash is good. It is the most sensible investment. But a 1% move in gold prices produces a 5% move in NEM which produces roughly a doubling in near-the-money calls in the front-running month. A ten percent run in gold prices here would be pretty easy to engineer given what is going on in the markets -- resulting in a fifty percent jump in NEM and a 2,000% jump in calls -- that is some dog. But cash is good also -- at least it is there in the morning when you wake up.

To: Robert Rose who wrote (71873)	8/4/1999 7:04:00 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 164684

Re: Gold and Nem. I continue to believe that the entire premise that gold is an inflation hedge is flawed. The only reason people ever thought that is based on the old gold standard from the 70s. Remove the gold standard, and what is gold? An overly abundant metal, used in almost nothing that costs more to dig up than its worth. Add to that the fact that the former eastern bloc is dumping like mad, and what do you have, not much. You can make much more putting and calling the internet stocks than you can in gold I think.