kkin365

How Cheap Are Gold Stocks Relative to Bullion?

A thought-provoking post. I read somewhere that in looking at gold stocks, one has to assess the extent to which its production had already been spoken for -- using your option analogy, the extent to which a company has covered calls. When so, any price appreciation above the call price belongs to the owern of this call option. This may explain why your synthetic value far exceeds the market value. Perhaps I am wrong.