Saturday, November 03, 2007 8:05:47 PM
The price of yellowcake for immediate delivery rose for the third week in a row,
this time posting a $4-gain to US$84 a pound of U3O8.
Industry indicator TradeTech reported the five-per-cent gain in the
October 26 edition of its Nuclear Market Review, holding two sales
responsible. As was the case in recent weeks where the spot price
budged upward, one of two transactions posted---for 100,000 pounds of
U3O8 equivalent---was priced slightly above the metal's current spot
price.
Analysts warn much of the increased market activity is driven by
speculators and hedge funds with a renewed thirst for cashing in on
the nuclear renaissance and that a price gap still exists between
willing buyers and wiling sellers.
But one cannot ignore record oil prices, which are reminding investors
of the need to diversify their energy portfolios. Bloomberg reported
crude oil rose to another record---$93.80 a barrel---just days after it
beat a previous record by jumping above $92 a barrel.
The last jump followed escalating tensions between the United States
and Iran, the holder of the planet's second-biggest oil reserves. This
increase comes after Mexico shut a fifth of its oil production,
reducing daily output by about 600,000 barrels as a storm passed
through the Gulf of Mexico.
And uranium prices rose across the board. The Resource World composite
uranium stock index, an index based on the performance of nearly 100
uranium companies, gained 19.49 points Monday to close at 1,306.06.
The index is now cruising at heights unseen, having blown past the
1,200-point threshold it's been flirting with all month.
The index last visited the 1,200-point range in July, before spot
prices tumbled from $138 a pound U3O8 to $75 a pound. After a few
months in the dumps, the index has now recovered at a time when the
uranium sector is again showing some strength.
Still, analysts remind investors to keep focused and not to let weekly
fluctuations make or break their big portfolio decisions. The futures
market remains stable, with the price of uranium for December delivery
sitting at $92 a pound, but the spot market remains thin.
In an interesting news development, an academic expert on nuclear
technology told the Canadian Press Monday he fears Canada may miss the
nuclear renaissance boat unless it plays ball with Global Nuclear
Energy Partnership (GNEP).
John Luxat, the Natural Sciences and Engineering Research Council's
industrial research chair in nuclear safety analysis, says the country
may well miss out on cutting-edge nuclear technology and waste
management if Stephen Harper's government continues to sit on the
fence when it comes to GNEP.
The U.S.-led partnership has already attracted 16 member countries and
the Bush administration is funnelling hundreds of millions of dollars
into related research, but Canada's Conservatives have yet to join or
comment on the initiative. This has Luxat worried the country's
multi-billion-dollar nuclear industry could fall behind the other
nuclear players.
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God Bless
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