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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: jrhana who wrote (31903)	10/29/2004 11:08:23 AM
From: jpthoma1	Respond to of 39344

Haven't read yet. Lost my dictionary! JP

To: jrhana who wrote (31903)	10/29/2004 11:17:55 AM
From: zebra4o1	Read Replies (3) \| Respond to of 39344

Uranium tome I think the two main points of this article are: 1) In the long term, there is plenty of uranium out there to be mined. And in addition, at the right price, enrichment can be substituted for mined uranium. "At the outset of examining this issue, we should point out that uranium is an abundant mineral, which, if exploited in a timely fashion, should be able to support virtually any nuclear power expansion path. However, with production currently at very low levels relative to requirements, it alone cannot fuel the immediate future of nuclear power." 2) The uranium market is totally messed up due to heavy government involvement. This can lead to wild price swings and demand supply imbalances. And right now it looks like we have the potential for a higher price. "The market is presently going through two adjustments that are having a dramatic impact on price. One is that it is transitioning from an inventory-driven price to a production-driven one. The other is that we are transitioning from a strong dollar to a weak dollar. The net effect of this is not only do prices have to increase to encourage new production, but they have to go higher yet in terms of U.S. dollars because almost all production is located outside of the United States. U.S. utilities see a sharply rising published price, while for producers (and non-U.S. utilities) the price rise is not as pronounced. "