The chart is courtesy of TradeTech.

Despite a $3/lb slid in the spot price the long-term price remains firm at $95/lb and that is the number that we should be focusing on. No doubt this change to the spot price will send some investors to the exit door, but is it really a time to sell?

This latest update comes from the web site called The UX Consulting Company, one of the foremost publishers of data regarding uranium. In a commentary carried by Reuters a trader is reported as saying:

“It doesn’t appear to be any immediate underlying demand from the utilities … so it keeps on softening off, It is possible for prices to fall further, generally people are well covered,”

The report goes on to say that according to a fund manager (we wish they would use names)

“The number of companies that keep on producing supply shocks, albeit small, is increasing and the number of reactors being planned is increasing,”

Looking down a list of uranium stocks they appear to have had a reasonable day. This news may not have got to them yet or just maybe enough is enough, as the volatility of the spot price is having less of an impact now?

To reiterate the longer term uranium price is still firm at $95/lb so we are not selling any uranium stocks. You, of course have to make your own decisions, as we are all different with unique objectives, aversion to risks, etc.

As for a buying opportunity, yes this could be it, however we are waiting a little longer for some sort of confirmation that this sector is on the move north.

Have a good one.

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