Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Uranium Stocks
Uranium Price
Our RSS Feed

Uranium Updates

Enter your email address:

Follow Us on Twitter
« Ur-Energy Incorporated: BUY | Main | Portfolio Update 21 August 2007 »

Uranium: The Pendulum Swings!

Uranium Chart 22 August 2007

The spot price for the world’s future energy material, uranium, has fallen to around $90/lb according to the Ux Consulting price indicator. Over the road we have $105/lb from TradeTech and a taking a quick look at the NYMEX Futures market we have December 2007 at $74/lb and December 2008 at $85/lb.

The pendulum first went one way with a swing from around $7/lb to a high of about $138/lb and now with the momentum all spent it is falling back. Will it come to rest at its median price; no, momentum will take it past that price as it swings into the too cheap zone.

As we have said before all eyes are on the auction results, which have just been held. This is microanalysis at its worst in our humble opinion, when one auction determines your investment strategy. The number to watch is the Long-term price indicator; think of it as moving average as applied to a stock. This figure we understand has not changed from $95/lb. Remember that summer is traditionally slow and this is a very thin market where the oscillations can and will be wild.

The spot price may well swing lower in the short term scaring investors out of this sector. And when it swings back again those same investors will be busting a gut to tell you how they once owned Toddler Uranium Corporation but unluckily they sold out for half the price it is now. Don’t be one of those storytellers.

Focus on the long term supply and demand fundamentals of the situation. The future is clear, it is Nuclear. Almost every day there are reports in the media about the latest country to embrace nuclear power. The demand for electricity is on the up and up, a pendulum that won’t swing back unless you are prepared to make enormous personal sacrifices.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (1) wants to share this video with you:

Floating Nuclear Power

Watch a promotional video that details the plans for ship-based nuclear power plants by a former Russian vodka salesman and convict. (Aug. 21)

August 22, 2007 | Unregistered CommenterMineko Young

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>