Monday, March 20, 2006

 

China Opening Lets Uranium Stocks Soar

A reader asked about the big move in uranium stocks today. "China has backed away from threats to intervene in price negotiations between its steel mills and Australian iron ore producers. The latest move by China was seen in some quarters as an attempt to clear the air ahead of the visit to Australia by Chinese Premier and former geologist Wen Jiabao."

"Apart from the potential for a bilateral agreement on nuclear safeguards being announced on his visit, clearing the way for the first uranium exports to China, other deals are in the making."

Here is a small north American uranium play. "Uranium Energy Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in North America. It primarily explores for uranium deposits. The company, either through lease or stake, has interests in 4,333 acres of mineral properties consisting of 8 claim blocks located in the States of Arizona, Colorado, Utah, and Texas."

"Uranium Energy Corp. was formed in 2003. It was formerly known as Carlin Gold, Inc. and changed its name to Uranium Energy Corp. in 2005. The company is based in Austin, Texas."

Reuters has the precious metals numbers. "Platinum prices climbed 1.1 percent to end Monday near a two-week high, supported by speculative and technical fund buying that emerged late in the U.S. session, dealers said. Silver dipped but still held near its highest in more than 22 years, buoyed by expectations of more investment demand to lift metal prices, while gold was steady in a tight band.'

"An U.S. analyst at a precious metals refiner said investment fund buying in New York hoisted platinum at the end of an otherwise lackluster session. The chart picture also looked short-term positive in platinum, which triggered some light speculative purchases, he added. Palladium was up at $317/321 an ounce from $315/320."

"Silver hit a high of $10.43 an ounce on Friday. Silver, used in jewelry, photography and electronics, has risen 18 percent since the start of this year."

"Gold, which failed to capitalise on silver's gains last week, traded in a range of $6 an ounce. 'We see some positive factors that could potentially bring prices near the top of this range,' said Yingxi Yu, analyst at Barclays Capital, referring to a trading band of $535-$575 in recent weeks. 'We have been turning quite negative on the dollar over the past week and we see some further downside potential for the dollar,' she said."

Comments:
If readers know of any uranium stocks, please post the stock symbol or name here, and I'll make a note of it.
 
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