Tuesday, May 13, 2008 at 03:42AM
Just when the uranium stocks look like coming to life the spot price for uranium takes another step lower. According to TradeTech who have reported this decline in the spot market price saying the following:
“May 9, 2008--Spot prices for uranium continued to slide this week with TradeTech’s Spot Price Indicator dropping $5.00 to $60.00 per pound U3O8. Market participants continue to seek the “bottom,” but the ready availability of supplies relative to extremely weak demand has made finding that price point elusive. Some sellers have started firming their offer prices in anticipation of potentially significant purchases by investors, while others remain willing to cut prices in order to conclude transactions. Two transactions are reported in the spot uranium market this week. All active demand remains discretionary with no buyers in a “have to buy” situation”
Now, if the investing community are becoming less reliant on the spot price and are taking more notice of the long-term price this piece of news may be less of a party pooper than usual. We started the week in a positive mood so now we must hope that this move is largely ignored and that the stocks remain steady. If they do then maybe we can begin to think about switching our stance to a more acquisitive one.
Laramide, one of only two ‘buys’ that we recommend at the moment put on 7.9% today so that’s a little more good cheer to keep us going.
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Have a good one.