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Monday, April 16, 2007

Uranium Futures!

Uranium and uranium stocks are not in a bubble. Not even close. However, there are steps down the road to perdition. Here is one of them ...

NYMEX signs deal to offer uranium futures in May

New York, April 16 (Reuters) - The New York Mercantile Exchange, a subsidiary of NYMEX Holdings (NMX.N: Quote, Profile , Research), said Monday it signed an agreement to introduce uranium futures on its electronic platforms next month.
NYMEX signed a 10-year deal with Ux Consulting Co. (UxC) to introduce on and off-exchange traded uranium futures products on CME Globex and NYMEX ClearPort platforms on May 6 for trade date May 7.
NYMEX and UxC, a top publisher of uranium prices and price forecasts, will provide marketing and education for the financially settled contracts, which will serve as the pricing benchmark for the rapidly growing industry, the exchange said in a statement.
NYMEX Chairman Richard Schaeffer stated the introduction of uranium futures provides the industry with transparent price discovery.
"We expect to create a benchmark contract for this important and underserved global market," he said.
NYMEX -- considered the world's largest physical commodity exchange -- offers futures and options contracts for crude oil, oil products like gasoline, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, emissions and soft commodities.

XX Sean's note -- this is where speculators are really going to get involved. Uranium futures could put us at $500 per pound in the blink of an eye. Not right away -- traders and speculators won't trust uranium futures at first. They'll be as illiquid as granite. But after six months ... a year ... however long it takes ... once they get going, man oh man, we could see some altitude very quickly. Because once you give hedge funds a way to trade in and out of uranium easily, then it's time to strap on your safety belts, because we could see the wildest ride of our lifetimes!

The next sign of the uranium bubble could be a uranium ETF in the US. Keep your eyes peeled for that one. I was kind of hoping an ETF would come before uranium futures … it would be less bubble-icious.


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