Largest uranium price jump in history

As StockInterview.com predicted a week ago, uranium sellers got what they were expecting - a price bump. For the week ending December 15, the weekly spot uranium price indicator jumped by $7/pound, or more than 10%, to $72/pound per pound U3O8. According to Treva Klingbiel, editor of Nuclear Market Review, this was "the single largest increase reported since NUEXCO began publishing prices in 1968."

The price increase resulted from a number of bids for an offering by a U.S. uranium producer of 260 thousand pounds of U3O8. Klingbiel reported this week's auction of uranium created a 'feeding frenzy' among buyers, writing, "Meeting this expectation, competition was indeed fierce, as buyers exhibited a willingness to pay a strong premium in order to purchase material at a fixed price."

Clearly, the spectacular price rally of 2006 will continue into early 2007 as the impact of the flooding at, and subsequent delays of uranium production from, Cameco Corp's Cigar Lake project in northern Saskatchewan. Because of the past two week's news reports, there was concern about the Department of Energy future auctioning from uranium inventories. These auctions may not begin to take place until mid 2007.

- First it was natural gas, then it was crude oil. Now it's uranium, setting price records and making profits for everyone who's gone long, in one way or another. I've made quite a few thousands myself from the "nuclear-powered" portion of my portfolio. It's been a good ride. The only regrets now are not buying more earlier and having sold some too soon. Go, nuclear! :)

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