waiting for nymex to trade futures, page-5

Sure, attemps will be made to manipulate prices by various means.

No doubt, JP Morgan and Goldman Sachs are waiting for this; however, there are some important differences between the supply of Gold/silver and Uranium:

1. Uranium is being consumed as is part of silver and a smaller part of Gold. There are seasonal trading densities for Gold and silver while in the case of Uranium, the demand is right though the year (No closedowns of nuclear facilities unless for maintenance and replacing nuclear fuel).

2. There is plenty of Gold and Silver in circulation and often the Demand is close to Supply.
One can't claim that to be the case of Uranium, more so as Sprott Securities and another Fund have been- and will be buying it and locking it away.

3. The damage at Cameco and ERA can't be talked away and the fierce rise in U prices is mainly due to their problems which won't go away.

4. While it takes time to build new nuclear facilities, it also takes time to build up the supply. At the moment, demand is continuing from older power stations while existing mines are being hollowed out and I can't see a quick replacement of U reserves. The US still receives weapons grade from Russia who is very keen not to export U as it needs it for its own power stations:
http://www.uranium.info/uranium/heu.html

5. China and India are building power stations and one may accept that China is usual in a big hurry. Hence any estimate from them will be an underestimate. They certainly won't be supplying true estimates as they don't like U price rises.

Some European countries will be building also and I would'nt be surprised if Brazil will do the same as well.

6. Uranium is somewhat akin to currency and I can see its price increasing with inflation, regardless of other factors.

Comment: Trading of Uranium futures will take some time to settle down.


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