Tuesday, October 03, 2006
uranium spot price up again
The technology has slowly improved in safety and there are a lot of benefits that weren't recognized in the past (the lack of greenhouse gases), not to mention that places like China and India have a huge need for more power and are suffering from horrible pollution which the emerging middle classes won't tolerate much longer.
In the news, possible new nuclear power plant in Texas. Russia building nuclear plants in China, "Russian specialists will be able to meet the previously agreed date for the handover of the first power unit of the Tianwan NPP by November 2006." The US DoE is awarding $8 million in grants for engineering studies on nuclear plants.
The spot price is not the same as the contract price (which is how most uranium is sold), but last I heard, the spot price was typically below the various contract prices lately.
All of this would be speculation if not for the large supply/demand imbalance (which I posted about here and here and more stuff in the combined links area) and the difficulty in correcting that imbalance over any reasonable period of time. My guess (and it's a guess: even the great Warren Buffett was wrong about at least how long it would take for the silver market supply/demand imbalance to play out), my guess is that when the dust settles, all the noise about gold and oil will end up being overblown while uranium quietly becomes an increasingly important comodity.
been there, done that, bought the CD (really!)