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tmaring
Penny Collector Member
USA
302 Posts |
 Posted - 01/21/2008 : 17:20:44
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I've been learning a lot about uranium lately. This may seem a bit off topic as it will concern mining more than simply the stockpiling of metal... but I think it's part and parcel of the same game.
For one thing... you don't want to get involved with stockpiling barrels of U3O8 (uranium oxide or "yellowcake"). That's the sort of thing that gets your door kicked in by really serious looking guys with guns wearing snappy black outfits and ski masks. I mean... look what they did to Saddam... and that was just because he was RUMORED to WANT to buy some. But... ANYBODY can legally go out on federal land and stake a claim on ground which contains uranium (or MAY contain uranium). Once you have your claim staked and some work done to prove that there's acutually some ore there you can either sit on your "hoard" waiting for the price to go up, or sell it to the highest bidder (among those with permits to process your ore... there's bunches of 'em). It's an interesting way to own and speculate on a metal that you don't actually even have in hand... and for which you could be arrested if you did!
BTW... It takes about a million pounds of U3O8 to core a new reactor... and about a hundred thousand pounds a year to keep one going. We only produce about 5% of domestic consumption here in this country, even though there are hundreds of millions of pounds of probable reserves sitting in the ground. We buy most of our uranium from Canada and Kazakhstan. Now... I'm okay with Canada... I don't think they're going to try to screw us TOO royally. But Kazakhstan??? Think of Borat having control of our electricity supply the way the Saudis control our oil supply. Not good! There are about 30 new reactors currently undergoing the permitting process in the US. It is unclear where the fuel is going to come from to supply them!
So... I'm out here freezing in the rocks trying to find one of these "probable" reserves... hoping to get some stakes in the ground by spring.
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Tom Maringer
Shire Post Mint
Springdale, Arkansas |
Edited by - tmaring on 01/21/2008 17:28:13 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 01/21/2008 : 17:24:52
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Sounds interesting. While you are out there put in some stakes next to yours for me. |
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Think positive. |
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tmaring
Penny Collector Member
USA
302 Posts |
Posted - 01/21/2008 : 17:31:54
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| Heh Heh... all it takes is money! |
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Frugi
Administrator
USA
627 Posts |
Posted - 01/21/2008 : 17:33:15
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I remember when uranium (U3O8)was very cheap ($30.00 per lb.), I wanted to invest back then (2006), and I knew I waited too long especially when it reached $140.00/lb. not very long ago.
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fiatboy
Administrator
912 Posts |
Posted - 01/21/2008 : 17:50:13
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I don't know much about uranium, so I found this post interesting. Thanks, tmaring. 
quote:
Kazakhstan
A country on the rise! People make fun of it, but it has the potential to be a crucial player in the 21st century. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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tmaring
Penny Collector Member
USA
302 Posts |
Posted - 01/21/2008 : 19:59:29
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quote:
Originally posted by Frugi
I remember when uranium (U3O8)was very cheap ($30.00 per lb.), I wanted to invest back then (2006), and I knew I waited too long especially when it reached $140.00/lb. not very long ago.
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Good source for a price chart! That spike is considered by most analysts to have been caused by the "accidental" flooding of a certain exceptionally rich Canadian mine. Rumors and speculation abound as to whether it was really an accident or just a ploy to boost the price. But after a bobble the price is still in the $85 to $90 range, and on a rising trend. As long as there are no more Chernobyls or Three Mile Island incidents interest in the expansion of Nuclear energy is likely to continue.
The biggest concern in the industry today is the plan by the DOE to "blend down" a large quantity of the US excess stockpile of HEU (highly enriched uranium... ie. weapons grade) to LEU and sell it into the utility market. (see You must be logged in to see this link. ) I have to admit that swords-to-plowshares is a great idea, and I like the concept that we are backing off from the completely absurd numbers of such weapons we maintain. It would also be good to rely less on former Soviet republics for supply. Problem is: if the DOE just releases the blend-down stuff all at once into the market the price will plummet and the industry that is currently struggling will go back into the doldrums of the 1980s and I, along with countless others, will lose our jobs. Then, when the DOE program has run its course, there will be insufficient fuel in the industry pipeline to fill the void. It take at LEAST five years to go from an exploration discovery to a shipment of yellowcake and without a market nobody is going to invest the huge sums necessary to make that happen. Hopefully the DOE leadership has enough foresight to realize that a viable uranium exploration, mining, and milling capacity is a strategic resource for the country. In that case, they might reserve their material as initial cores for new reactors and let the industry pick up the refills.
Long story short... if you're invested in uranium, keep a sharp eye on the DOE as they have the power to cremate the price whenever they choose. Be especially watchful if there is a leadership shake-up related to the upcoming election. |
Tom Maringer
Shire Post Mint
Springdale, Arkansas |
Edited by - tmaring on 01/21/2008 20:10:41 |
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Know Common Cents
Penny Pincher Member
195 Posts |
Posted - 01/30/2008 : 23:43:48
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I thought of nibbling at the yellowcake market when it was $35 per pound. Then it did take a radical jump to $100 and I felt like the jilted groom who was left at the altar. Very interesting, though.
I'm also interested in Rhodium, but at $7200 per troy ounce on the spot market (You must be logged in to see this link.) my modest income could at best afford one-tenth ounce. Nine other members around who'd care to split an ounce with me? LOL. |
Here in Wisconsin, we have some of the highest property and gasoline taxes in the US. We're squeezed so much, I have to make my daughter wear penny boxes for shoes. At least she has an endless supply. |
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Hoarding Uranium???
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