As mentioned in a previous Atomic Show, the uranium market is full of speculators and get rich quick opportunists.
The International Herald Tribune published a story on March 28, 2007 titled High price of uranium prods U.S. mines to life that gives some indications about the natural response from mining companies and independent explorers. A close read of the article will provide some feel for the productive capability within US borders that has remained dormant during the long hiatus in new nuclear plant construction.
The high current prices are having the exact effect that textbook economics says will happen with a dramatic rise in the price of a commodity – the suppliers recognize the opportunity and rapidly ramp up production to meet the demands.
Once again a warning – it is rarely a good time to buy a commodity or a commodity play in a situation where there has been a 900-1000% price increase over a five year period.
