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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (47964)	2/4/2000 2:11:00 PM
From: Claude Cormier	Respond to of 116815

From LeMetropoleCAfe.com BULLETIN - GOLD UP $17 - PLACER DOME ANNOUNCES SUSPENSION OF HEDGING ACTIVITY - MORE LATER

To: GST who wrote (47964)	2/4/2000 2:15:00 PM
From: goldsheet	Read Replies (1) \| Respond to 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.