Uranium price started to Boom, page-2861

Sorry, my earlier post was not completely correct.

One co-relation to this downtrend has been Sprott. In the same period of these 3 weeks of slow decline, Sprott has been found to be missing in action for most of this time - nearly the same period. It seems they have put a brake on buying further pounds from the market. This has led to a softening in the U price, which has led to these declines. So Sprott and its impact on U price, and U price and its impact on U stocks is a co-relation that is more or less evident.

We also have to remember that it was strong buying from Sprott which started the so called "boom" - so they are definetly a strong actor in this game. Meanwhile govts across the world are taking the steps to ramp up nuclear, so that has definetly helped the cause. And it is these macros which underpin demand are getting stronger.

What is still not clear is why Sprott is acting this way now. There are number of theories -

• Wants to have a lower SP when it takes over the Fund in Q1 2022, so that its performance can be shown from a low base
• Sprott itself wants to buy at a lower rate
• Sprott felt that the market was very much heated up, so providing means to cool it for sustained increase
• Sprott is playing games, by itself or in conjunction with other players like utilities etc

Lets see how this side of things play out and how Sprott behaves in the next couple of weeks and provides some stability. I think Sprott also wouldn't want market to reach a state where it has disillusioned the investors to the extent that they won't come back - it may defeat its purpose. I am sure we will hear more around this role of Sprott in coming weeks. Take care, play safe and all the best.