Uranium Update

Ladies and gentleman, I am pleased to inform you that the price of one pound of enriched uranium (U3O8) rose an astounding $18 to $113 /lb.

As I predicted at the beginning of the year uranium has surpassed $100 /lb. It looks as if that prediction was ridiculous, and I don't see much problem in taking out the $150 mark in 2007.

From what I have read, the bidding was outrageous and wild at this last auction. Passing the $100 barrier should excite all those psychological traders and bring in strong demand for these uranium stocks.

I can't pretend like I was on the front end of the uranium bull when it was trading at $7 /lb, but I have been trading since the U3O8 was trading at $61 /lb. When you see moves in the market like this, and with 6 million pounds of demand for U3O8 out there still, you can see why discussions of a market top, especially around $140, are ridiculous. The only thing that could hinder this market is some sort of drastic government intervention, which I don't see happening at all.

And as long as were discussing the century mark in the price of uranium, I am proud to say that this is my 100th post. Thanks for reading and I don't plan on slowing down.