Uranium Through the Roof

Trade Tech:

The quest of buyers to secure uranium at fixed prices continues to fuel the price rise, with any spot material offered up by sellers creating a “feeding frenzy.” As a result, the spot price for uranium jumped $7.00 this week to $72.00 per pound U3O8—the single largest increase reported since NUEXCO began publishing prices in 1968. Bids were due December 15 to a US producer auctioning 260 thousand pounds U3O8. Other sellers, in anticipation of future price increases, have grown increasingly reluctant to release material into the market, and thus competition for the auction material was expected to be aggressive. Meeting this expectation, competition was indeed fierce, as buyers exhibited a willingness to pay a strong premium in order to purchase material at a fixed price. The producer received multiple bids with the winning bid at, or very near, the December 15 Uranium Spot Price Indicator of $72.00 per pound U3O8.

Analysis:
I have been holding off on buying uranium because my funds are limited. Right now I'm sure glad that I have some money tied up in U308 mining. I originally thought the take off was going to be slower and more gradual over time. I figured that I had more time to get in the market. Honestly, I sure didn't see this happening. It looks as if the public caught on sooner than I thought. I thought uranium would hit $100 /lb around 2010. I would like to take that back. I see $100 /lb for uranium in 2007.