Many moons ago whilst involved with oil projects in Alberta I used to fly frequently between Edmonton and London. ‘On Golden Pond’ was often the in-flight film so I spent some time looking out of the window and marvelling at the solid mass of ice below me. On this trip however the ice was fragmented with huge patches of water scattered liberally across the earth’s crust. This is only one persons observations with no scientific backup. Maybe I just didn’t notice the water before or maybe I travelled during a different season in the past or maybe I’m paranoid about global warming! This observation will be filed in the box marked anecdotal evidence for now as there is probably a logical explanation for it however it did bother me somewhat.

Moving on we meet up with some friends in LA where we witnessed at first hand the effect of the fires that have ravaged this part of the world recently. The drought in this area has been going on for months leaving the ground susceptible to even more fires. I remember driving from Edmonton to the Tar Sands Projects in Alberta with fires blazing on both sides of the roads and wonder if we now have more fires or more media coverage giving us the impression of more fires? Either way it is an awful experience to be involved with a fire hazard.

And so to uranium which is still holding at $93/lb and is $15/lb up from its low of $78/lb. Many thanks to our readers who send us e-mails and comments about various aspects of the market which is greatly appreciated. One such reader was a little puzzled with the NYMEX reporting the futures price of uranium at around $82/lb for 2008 and wrote and asked them for an explanation. We are not suggesting for one minute that an enquiry can prompt a change but when we last looked it the futures price was $99/lb for most of 2008. It should be remembered that this market is pretty thin at the best of times and that the futures market is in its infancy and therefore subject to more anomalies that other more mature metals markets.

Uranium stocks: we should have updated the portfolio but with being on the move and also indulging in some leisure time it has been side lined for now. However a quick look at the charts tells us that this is not a pretty sight with most uranium stocks taking it on the chin lately. We do not know the reason behind this sell off other than investors pulling the pin in order to lock in profits or minimize losses. However according to TradeTech the price of uranium remains steady at $93/lb so we would have expected uranium stocks to have performed a lot better than they have. The order of the day for us is to hold on to the stocks that we have and monitor a wide range of stocks with the view of finding a real gem at a bargain price.

Finally a word from Zoltan a mechanical fortune teller on Venice beach who uttered these words to a paying customer:

“Hard work will pay off in the long run
but laziness will pay off today, so chill out”

It went down well with an early morning coffee!

Have a good one.

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