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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: jocko who wrote (2037)	2/8/2000 6:01:00 PM
From: Enigma	Respond to of 3558

"For every $100 over the strike price, they are looking at a $680 million loss" A virtual loss??!! If I own a stock which cost me $10 and it's now at $30 and I write a call on it at $32, and pocket $3, and it goes to $100 - do I have a loss of $100-$32? Or am I happy with my profit of $32-$10 + $3. And content to let the buyer have his profit too. What's gone is gone. A little sleight of hand in your quote I think!

To: jocko who wrote (2037)	2/8/2000 7:57:00 PM
From: russwinter	Read Replies (2) \| Respond to of 3558

Howe makes a valid point. In other words questioning the ability of the counterparty to deliver real gold. Yes, the daisy chain could break. I focused more on the fundamentals for POG, since I'm simply not interested in ABX as an investment. What they do in the marketplace is important though. And they are clearly delivering at least some (1.4 million this year) gold from their production without establishing (in effect selling) new forward contracts. The gold market seemed disappointed that they didn't do more. But, that's like asking heroin addicts to quit cold turkey. At least PDG and ABX are in recovery, and that's light years ahead of a week ago. I'm bullish on gold.