Uranium Spot Prices Track Lower
According to the Ux Consulting Company, spot prices for uranium this week hit $57/lb. US. This is considerably lower than their 52 week high of about $136/lb. US (off by about 58% in a few short months).The recent lower price has not gone unnoticed. In an article yesterday in the Financial Post, David Pett discusses how lower uranium prices could cause investors to turn away from uranium companies. This in turn could jeopardize exploration and development. As a result, future availability of supply could become an issue and ultimately slow down the so-called "nuclear renaissance."
I for one won't be disappointed if investment in dirty, open pit uranium mines in major watersheds and near population centres dries up. That would be the cleanest and greenest contribution from this industry of all.
For more from the Financial Post: http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/06/17/low-uranium-prices-could-turn-equity-markets.aspx
PS. I just read a report on Technically Uranium with Merv's site that indicates ongoing short and medium term bearishness for uranium stock values. Merv conducts technical analysis as a Chartered Market Technician and reports regularly on the market.
In his June 18 report, he says:
The trend to lower uranium prices just does not seem to end.
For more information:
http://techuranium.blogspot.com/2008/06/mervs-daily-comme
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