New Spot Uranium Price - Us $95 per Pound

Is it springtime euphoria or March Madness? History is being made every few weeks in the uranium pricing market. Friday's proclamation by TradeTech's Nuclear shop characterize magazine, raising the weekly spot uranium price to Us/pound demonstrates someone else milestone. Soon, it won't matter either comparisons are made in constant U.S. Dollars or inflation-adjusted currency.

This past week, three transactions were reported by Nmr editor Treva Klingbiel for less than one million pounds U3O8 equivalent. Two transactions of 650 thousand pounds U3O8 equivalent contained in Uf6 and one for less than 300 thousand pounds of U3O8 were completed in the past week. Material was sold for immediate and June deliveries.

Kazakhstan

"Seven buyers continue to seek over three million pounds," according to Treva Klingbiel She added that any further utilities have begun manufacture first inquiries about future purchases. "Buyers remain willing to pay higher prices," Klingbiel wrote.

Perhaps higher uranium pricing prompted the transaction between Exelon (Nyse: Exc) and UrAsia power (Tsx: Uuu), announced this past week for 2.5 million pounds of U3O8 to be delivered to the Illinois-based utility between 2009 and 2013. The uranium will be mined at UrAsia's Akdala and South Inkai in situ salvage operations in Kazakhstan.

Nmr announced someone else 100 thousand pounds will be offered for sale in a sealed-bid auction next week with delivery in April. While the enterprise was not named, nearly every person in the uranium sector believes this unnamed enterprise would be Mestena Uranium Llc. The private, publicity-shy enterprise is based in Corpus Christi (Texas) and could be responsible for the spot uranium price reaching, or surpassing, the Us0/pound level sometime next week.

Given its current momentum, yellowcake or uranium oxide may someday trade on par with the price of silver. U3O8 is now priced at Us.91/ounce (if measured in troy ounces as are silver and gold). By comparison, spot silver fulfilled, on March 23rd at Us.13/ounce so it may take a while longer.

Uranium mining and exploration stocks have begun reflecting the weekly price rise in spot uranium, rebounding from the sell off in late February and early March. Many of the near-term producers don't require 0/pound uranium to show a behalf on their mining efforts, but the high price excites investors - many of whom appear to be doing a 'New Year's Countdown' as spot uranium approaches Us0/pound.

We talked with Matthew Smith, who created a Canadian and Australian stock index. He is not a registered venture advisor. Smith began tracking a briefcase of 43 Canadian uranium and 25 Australian stocks as an index so that investors could quickly collate how their uranium stocks fared against his non-weighted stock index.

While Smith does not dispense venture advice, he told us, "I did not believe the uranium bull shop was over." He was referring to the up-to-date sell off. "Bull markets never end that way," he added. "The index rebounded accordingly, as it rose 10 percent from the bottom of the short correction, which is typical of corrections in vaporing markets. We have formed a bit of retain over the past 2-3 weeks and it could go higher."

Smith believes both the Canadian and Australians stock indexes could test their all-time highs over the next two months. He explained both indexes are dependent upon developments in the sector. He cited drivers for uranium stocks would comprise higher remediation costs at Cigar Lake, a convert in the Australian uranium mining policy, superlative drill results from exploration companies and more consolidation in the junior mining sector, especially one with a large excellent attached.

Smith also invests in uranium stocks and provided us with his basket of favorite uranium stocks, which he considers the 'least speculative' in his portfolio. Of stocks found in his Canadian uranium index, Smith likes Ur-Energy (Tsx: Ure), Strathmore Minerals (Tsx: Stm), Sxr Uranium One (Tsx: Sxr), Paladin Resources (Tsx: Pdn) and Pitchstone Exploration (Tsx: Php). Among Australian stocks, Smith prefers PepinNini (Asx: Pnn) and Berkeley Resources (Asx: Bky).

Copyright © 2007 by StockInterview, Inc. All rights Reserved.

New Spot Uranium Price - Us per Pound

See Also : todays world news headlines