Replies to post #17683 on Value Microcaps Junior Energy

[Bobwins]

re SPUT

I understand the appeal of the physical stuff but don't get where the fund ends up. They state that they won't sell so what are they going to do with 50 million pounds of U308?

They have effectively soaked up the slack in the spot market, forcing spot prices up and basically taking away a source of U308 from the utilities that will eventually have to contract for the stuff at higher long term pricing.

Japan still appears to be the closest near term source of real demand. They had long term contracts for U308 and have periodically sold into the spot market, helping create the long term bear market. But if they speed up their revival of refurbished plants, they might impact near term contract pricing.

Of course China is building many new plants as well. But they will probably get their U308 cheap from their comrades, who will probably have a surplus.