Uranium company stocks rallied this week in advance of the off exchange uranium futures trading on the New York Mercantile Exchange (NYMEX).
The NYMEX listed a uranium futures contract yesterday, May 7, as the energy and metals exchange looks to capitalize on surging interest in the nuclear fuel.
Whether the launch of futures contracts will be an advantage or disadvantage to the uranium market depend on who you ask.
The futures contract provides nuclear power plants with a vehicle to hedge against rising prices, which have surged more than tenfold in the past four years as commercial stockpiles dwindle and more plants are built. It would also provide a forum to bet directly on gains and falls in the price of uranium, rather than speculating on the fortunes of miners.
The NYMEX listed a uranium futures contract yesterday, May 7, as the energy and metals exchange looks to capitalize on surging interest in the nuclear fuel.
Whether the launch of futures contracts will be an advantage or disadvantage to the uranium market depend on who you ask.
The futures contract provides nuclear power plants with a vehicle to hedge against rising prices, which have surged more than tenfold in the past four years as commercial stockpiles dwindle and more plants are built. It would also provide a forum to bet directly on gains and falls in the price of uranium, rather than speculating on the fortunes of miners.
