Uranium Week: Uranium Price Drivers

A jump in the weekly spot price focuses the minds of uranium participants on both short and medium-term price catalysts.

-Increasing short-term transaction volumes
-Bullish 12 month view
-Spot uranium rises over 8% to $US29.65/lb

The weekly spot uranium price showed renewed volatility this week, spiking 8% to US$29.65/lb.Industry consultant TradeTech cites increased transaction volumes driven primarily by producer and investor activity as one catalyst for the short-term rise. When combined with cuts and reductions to primary production, there is potential for considerable influence on the uranium market.Investor interest from funds has undergone a recent resurgence with Uranium Participation Corp (UEC) and Yellow Cake plc acting as first movers to take physical positions in the uranium market, by sequestering uranium concentrates. This may be termed a “buy and hold” strategy.In addition, select emerging producers have supplemented this strategy with a “buy and deliver” revenue model, notes TradeTech. By way […]

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