uranium and oil: extreme necessities

Both are needed and complement each other: Uranium can take on the base loads while oil drives a host of activities, one is transport, be it by plane, ship or car.

Suggesting that ethanol will reduce the demand for oil overlooks the fact that it has'nt got the power of petrol. As more is produced, the discovery of meaningful oilfields becomes less and less while current inventory numbers are highly suspect, considering that the big fields have seen the best and are producing less.

But investors are often tuned to the moment and the seemingly endless supply of oil. They won't act unless with their backs against the wall.

The same applies to Uranium as well, IMHO. Reference was made to the 'important' coming up sale of some 200 tonnes by the US Government. That amounts to only 440,000 lbs within a total demand of some 160 mill lbs.

I do believe that before long the current peace re pricing of oil will undergo a change with more sudden reports indicating the unique scarcity of this resource to come. This means that countries will take the weight off oil whenever possible by planning more nuclear power plants.

It already is an urgent matter as it takes at least some 5 years to build a large scale plant but less for a plant which is not necessaily stationary.

Therefore, I don't take too much notice of claims that Uranium prices will move below $100, after all, it will take a number of years to bring plants into production or projects to be mined.

I do believe that *judicial* longer term investments in Oil and Uranium will pay.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.