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To: Square_Dealings who wrote (54565)8/9/2006 11:21:56 PM
From: yard_man  Read Replies (1) | Respond to of 116555
 
obvious flaw in basic reasoning here:

safehaven.com

If a miner is making $10/oz at 400/oz -- ceteris parabis, @ 410/oz the miner's earnings should double to $20/oz.

Now we know that doesn't happen in practice, often -- but this fellow has the theoretical leverage wrong in the situation and is confused by trying to make an analogy from the gold mining stock to an option on gold.