...David Fuller says, "it (uranium) doesn’t have a futures market. That’s the big factor. The price is certainly rising, but with a futures market, you get the big leverage coming in. You get hedge funds rushing in and plenty of other speculators. You get them buying, and they’re short-term players. The absence of a futures market and the constraints on owning uranium metal really restrict that. As we’ve said all along, it’s been a Fullermoney premise that uranium was the best of the energy bull stories by far. That’s an obvious point, particularly with all the concern over carbon emissions.
In terms of long-term demand, it can only rise and rise enormously. I don’t see any other solution to the energy problem, let alone the clean energy problem, other than nuclear. Any elasticity meets rising demand. There is very little incentive for any major mining company to increase the production of uranium because they would be locked-in, depending on the contract. Some perhaps at $20, or possibly even worse. Anybody who really knows understands the resource in the ground is infinitely more valuable. Is China going to quibble over the cost of uranium? Are the French? I doubt it very much. This has been, still is, and will remain by far, in my view, the most bullish of the energy stories."
In terms of long-term demand, it can only rise and rise enormously. I don’t see any other solution to the energy problem, let alone the clean energy problem, other than nuclear. Any elasticity meets rising demand. There is very little incentive for any major mining company to increase the production of uranium because they would be locked-in, depending on the contract. Some perhaps at $20, or possibly even worse. Anybody who really knows understands the resource in the ground is infinitely more valuable. Is China going to quibble over the cost of uranium? Are the French? I doubt it very much. This has been, still is, and will remain by far, in my view, the most bullish of the energy stories."
