.: How is the Weekly Spot Uranium Price Calculated?
Category:Home / Finance / Stock Market Investing
Trading in the uranium market is done by a very small number of players. After all, there are about 440 nuclear reactors worldwide, a few dozen trading firms, fuel managers, and a relatively small number of utilities who participate in the actual buying of uranium. It’s the front end of the nuclear fuel cycle. Without it, nuclear reactors shut down. The uranium price has been skyrocketing since Christmas week 2000, with no end in sight. Forecasts range from $50/pound to well above $100/pound. Few believe the spot uranium price will go lower in the near future.
It’s become a fun game. Every Tuesday night (Monday afternoon, if you are a subscriber to the Ux Consulting), you will see the spot uranium price posted on the company’s front webpage. Moments later, the Yahoo and other Internet chat boards light up with commentary about the current uranium price and where it might head next. The spoiler is that TradeTech LLC issues its spot uranium price on Friday to subscribers and to the general public on Sunday night. Investors have been betting on the price swings of their favorite junior uranium stocks (more leverage, more risk/reward) by trying to second-guess the uranium spot price. Now, you can find out exactly how Ux C arrives at their weekly spot uranium price, from the president of Ux C, himself: Jeff Combs.
StockInterview: How does Ux Consulting arrive at your weekly spot uranium price?
Jeff Combs: We have a pretty specific definition. What we’re looking for is the lowest offer of which we are aware, at around the time we publish the price. The quantity being offered has to meet certain parameters. It has to be a certain size transaction within a certain timeframe. So we’re not really trying to cover transactions, per se. Obviously, where there is a transaction that takes place, there’s an offer embodied in that. We’re really trying to capture where the market is going based on current offers, rather than where it has been.
StockInterview: So is your published spot price more of a predictor than an actual trade?
Jeff Combs: It’s a predictor only in the sense that the next deal is likely to be done at the lowest offer price if the market is working efficiently. It’s like in the stock market where the lowest offer price will be taken first, although the stock market is a lot more efficient than the uranium market. Thus, we aren’t predicting the price of the next deal per se, but reporting the lowest offer price, which is an indication of where the sell side of the market is at that point in time.
StockInterview: So the weekly published spot uranium price is not based upon an actual sale of uranium that took place that past week?
Jeff Combs: Since it’s more of a forward-looking concept, the sale – that is, the coming together of buyer and seller - hasn’t necessarily taken place. But the level of the lowest offer indicates where the market is at that point in time. The sale itself shouldn’t deviate much, if any, from the offer price. This is especially true in a sellers’ market, where buyers don’t have much negotiating power. But it’s also true in a buyers’ market, as sellers are looking to offer an attractive enough price to encourage the buyer to take the material.
Article keywords: uranium, energy, mining, nuclear energy, China, India, Canada, Australia, France, utilities, commodities, electricity, uranium mining, Athabasca Basin
Article Source: http://www.articles32.com
James Finch contributes to StockInterview.com and other publications. Read the rest of this interview and sign up for your free subscription to articles by James Finch by visiting www.stockinterview.com
.: New Stock Market Investing Articles
1). Difference Between Paper Trading And Live Trading!
Both paper trading and live trading are important steps to accumulate wealth through stock investments.
2). Stock Index Funds - What Is An Index Fund?
You may have heard of the term before, financial indexes, but just what exactly are they. Indexes, also known as stock market indexes, are the listings of stocks and any statistics that show a full of value of any given stock in the index. These indexes are generally used to show the character of all the stocks taken together.
3). Stocks - How To Know When To Sell
Stocks can be a great investment. Most people don`t really know when it`s time to sell though.
4). Some Fundamentals of Option Trading
Option trading is an ever increasingly popular form of investment. The wide spread use of online option trading has led to many newcomers to these risky, but potentially profitable opportunities. The following is a review of some of the fundamentals of Option Trading.
5). Future Option Trading - A Brief History and Overview
Future Option Trading is similar to the Stock Options Trading in many ways, but there are also some major differences. Some of the terminology used in Futures Trading also has a different meaning than the same term when applied to Stock Option Trading, and caution must be used to avoid confusion.
6). A Sample Option Trading Strategy
When you feel you understand a bit about the Options Trading Market, and are ready to give it a try, you need to spend a bit of time developing a strategy to guide your investment decision. It is important in doing this to understand the basic difference between a strategic decision and a tactical decision.
7). Fibonacci and Golden Ratio
The Fibonacci numbers Golden ratio can be used to describe the proportions of everything from nature to smallest building blocks. This is used by many successful investors to pick trends in the charts.
.: Top Stock Market Investing Articles
1). James Dines Predicts a Buying Panic in Uranium
Over the years, Dines successfully forecast the Internet mania, forecasting the giants of the tech boom, and forecasting the tech bust. A gold bug again, Dines also added uranium as the metal to watch over the coming years, saying, “This is my way of playing the whole coming energy boom."
Interviewer: You have been calling a bull market in uranium and, once again, you were the first voice in the now-growing crowd of uranium bulls.
2). Interesting Historical Facts About The Stock Market
Did you know that the 1987 crash was worse than the 1929 crash?
3). Openwave-Could the little company ever become king?
Openwave has a very unique and valuable business in the wireless data market. It has a dominate market share of 50% in both the browser and in the gateway transitions for mobile phones. Both products are a core element in the data cell phone market.
Our philosophy is to own the critical elements in markets that appear to have revolutionary growth. In January 2004 we wrote an article saying the wireless revolution has begun.
4). A Man Who Turned a $15,000 Stock Account INTO $3,296,000 Million AND WHAT I Learned From It
The lessons I learned from a trader who turned a $15,000 account into over $3 Million with JUST two stock trades.
5). Option Trading Tip - Buy Deep In-The-Money Options
Time decay and volatility are responsible for many a broken option trading account. Discover how to neutralize these 2 forces and achieve more consistent profits!
6). The Grand Daddy Boom in Uranium
Approaching his 50th year in the uranium business, the quiet but assertive Chairman and Chief Executive of Uranium Resources (OTC BB: URIX). Paul K. Willmott talked to us about the current uranium bull market. Willmott discussed the third uranium bull market he’s experienced with both exuberance and caution.
Interviewer: How do you feel about the rising.
7). Why Is Eric Sprott A Uranium Bull?
Eric Sprott may be Canada's answer to Warren Buffet. He's got the Midas Touch and currently manages more than $3 billion. We talked to Eric Sprott about uranium and why he is bullish on nuclear energy.
Interviewer:
Uranium had been inching higher from 2001 until a year ago. Since then, it has soared up the price chart. What is a realistic price for uranium and how high can you envision it reaching?
Eric Sprott:
There is obviously a shortage between current mine production and current uranium consumption.