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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (1506)	12/29/1998 8:05:00 PM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 8010

Delivery of Silver: I am based in Japan, so I don't have too much info, but: 5,000 oz is the main contract size, but I believe that 1,000 oz contracts are available. If you buy the nearest contract the prices should be very close to spot, none of the idiotic margins you have to pay when buying coins at dealers. Commissions are minimal.....depends on who you deal with.....since you are taking delivery you will near a person, not an "e-trade" type company.....maybe $35/contract (5,000 oz) or so? If you keep it in the wharehouse and just have the silver registered in your name, then I don't see any reason to have it assayed when you sell it. *I would call around and find a broker who will help you take delivery of a contract, most want you to buy & sell to generate commissions. Bernie Bohl is friendly: bohl@minot.com Glenn Toth <glenn@commodity.com> is another person that seems helpful....however, you should ask people that do business in the states. Good luck, THC

To: long-gone who wrote (1506)	1/3/1999 3:45:00 AM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 8010

Mad Dreams of a Silver Million Happy New Year to All! Looking forward to a sparkling end to the millenium! Now, just for fun, I would like to consider what would happen were we to get a multi-year, "millionaire making" bull run in silver & the other PMs. I know that it's 99.9% fantasy, but allow me to indulge.....it's that last 0.1% that makes things fun.... Silver options appear to offer by far the most leverage, so I used them for the following calculations of madness ( 5,000 ounces per contract ) : Level 1: Jan. 1999 POS= $5 Buy 1 Dec 99 $6.25 call for $850 ( 17c ) Cost of 1yr $1.25 OTM call is 17c/oz Level 2: Sometime before Nov 99, POS rockets POS = $8.25 Sell call for $2 x 5000 = $10,000 Will assume due to volatility that cost of 1yr $1.25 OTM call has doubled to 34c ( this is an idiot guess, pls provide more realistic estimate! ) Buy 5 $9.50 Dec 00 calls @34c, .34 x 5000 x 5 = $8,500 Level 3: Sometime before Nov 00, POS rockets again POS = $11.50 Sell call for $2 x 5000 x 5 = $50,000 Buy 25 $11.75 Dec 01 calls @34c, .34 x 5000 x 25 = $42,500 Level 4: Sometime before Nov 01, POS rockets again POS = $11.50 Sell call for $2 x 5000 x 5 = $50,000 Buy 25 $11.75 Dec 01 calls @34c, .34 x 5000 x 25 = $42,500 Level 5: Sometime before Nov 02, POS rockets again POS = $13.75 Sell call for $2 x 5000 x 25 = $250,000 Buy 100 $15.00 Dec 03 calls @34c, .34 x 5000 x 25 = $170,000 Level 6: Sometime before Nov 03, POS rockets again POS = $17.00 Sell 100 calls for $2 x 5000 x 100 = $1,000,000 Once again, I am new to options and there may be many problems ( besides the risk, which should be obvious to all ) in the above options "gambling/pyramiding" strategy. I am hoping that others with more experience could point out how the actual prices of silver options would change should the POS move significantly. Looking forward to comments..... Good luck to all, THC