Trading in Uranium Futures Kick Off

May 5, 2007 | By | Reply More

Next week sees Uranium joining the real world of commodities.

On Monday 7th May, trading in Uranium futures will kick off on NYMEX.

Over the last five years the price of uranium has increased over 1000% and has not had one down day for nearly four years.

We are still in the early stages of a worldwide nuclear energy blast off (I nearly said explosion!!) with new nuclear power stations under construction and an ever-increasing number in the planning stages.

There remains a significant shortfall between the amount of uranium being mined and projected requirements.

There is recognition that nuclear energy is the only practical alternative to diminishing and ever more expensive fossil fuels in producing electricity and of course in alleviating the global warming problem.

Australia is relaxing its prohibition on the number of uranium mines allowed to operate.

The USA has introduced a package of incentives to encourage its utilities to move over to nuclear powered electricity generation.

China is on record as stating it wants to generate most, if not all, of its growing electricity needs from nuclear power and has already taken great strides towards this goal.

Despite the usual prevarication from Tony Blair, the UK´s prime minister, that country seems to be the only significant trading nation not to have embraced the new nuclear age.

Hopefully his replacement will take action rather than lip service although I wouldn’t bet on Gordon Brown having the intelligence and endeavour to persuade the minority of doubters of the benefits.

We believe that the open trading of uranium futures is most likely to give an added boost to the upward price momentum of the metal and widen interest in the producers and those companies involved in nuclear technology.



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Category: Uranium

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