Sunday, August 17, 2014

Uranium rises above $30lb


As Raymond James analyst David Sadowski states in a new Weekly Uranium Tracker, so far in August, trading volume is up 1.3 million pounds on continued interest from traders and utilities.

Part of the fuss has been brought on by Russian sanctions, which remain a catalyst for buyer interest. Indeed, as Sadowski highlights, sanctions are "contributing to the recent run-up in spot pricing, up US$1.69/lb in six trading days."

Also of note, is long-term volume, which is still at zero. However, "interest remains strong as evidenced by three utilities' request for a total of ~5.8 Mlbs."

The majority of mines cannot make a profit at these pries. We know that low prices are the cure for low prices because demand continues to grow and economics will not allow for new mines. The question is again timing which I cannot know. In the end every commodity goes through these price cycles and buying uranium at these prices will eventually lead to gains.

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