The Alchemist

When did the alchemist use the elixir of life to make the gold? He only used the Philosophers stone right?

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You are correct. The alchemist takes a sliver off of the philosopher's stone and adds it to the lead that he gets from the monk. After it is through combining, he gives some of the gold to each of them. He makes a point of mentioning the elixir of life so that it can be overheard...whcih comes into play later on when Santiago is attacked.