Is $50/Pound Uranium Sustainable? by James Finch

Uranium prices have been increasing mercilessly over the last few years. In this essay, Gene Clark, Chief Executive of TradeTech writes about the role of speculators in the market.

For a certain length of time, the speculators’ goals and actions are self-perpetuating. They want (and need) rising prices, and their market volume is creating much of the upward pressure on the spot price and, by historical linkage, on the long-term base price.

 
But, there is one simple rule to keep in mind: Secondary Demand + Time = Secondary Supply Since the speculators cannot "consume" uranium, eventually those pounds of uranium will have to be sold to realize any market gain. And, the more active the speculators have been in buying up material, the more active they are likely to be in selling the same material, with obvious implications on price pressure.

Everyone involved in the uranium markets knows that there is a growing stockpile of uranium being accumulated by “speculators”. However nobody knows when this supply  is going to come back into the market. Gene Clark provides us with an important reminder that there will be consequences when it does.

50/Pound Uranium Sustainable? by James Finch.