A study on the uranium market by Australia's BGF Capital claimed that any conventional analysis would overwhelmingly show the uranium price must move higher to underwrite the supply response needed for the growing demand for uranium and to fill the shortfall from exhaustion of stockpiles and weapons conversion programmes.
Analyst Warwick Grigor, a well known commentator on the Australian resources scene, said that right now the world is more concerned about what is happening this week than next year "as the drive for liquidity is causing a meltdown in asset and commodity prices.
"The longer the short-term focus is dominant the more critical will be the shortage of uranium, two to four years out. Whether the price moves up much in anticipation of this shortage will depend upon whether speculators are willing to lead the market again," he said.
It was only four years ago that no-one was focusing on uranium. The uranium oxide price was still about $US15/lb. Then the global warming debate gathered momentum, at the same time that the rising dragon in China really started to show aggressive demand...
Analyst Warwick Grigor, a well known commentator on the Australian resources scene, said that right now the world is more concerned about what is happening this week than next year "as the drive for liquidity is causing a meltdown in asset and commodity prices.
"The longer the short-term focus is dominant the more critical will be the shortage of uranium, two to four years out. Whether the price moves up much in anticipation of this shortage will depend upon whether speculators are willing to lead the market again," he said.
It was only four years ago that no-one was focusing on uranium. The uranium oxide price was still about $US15/lb. Then the global warming debate gathered momentum, at the same time that the rising dragon in China really started to show aggressive demand...
