Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Monday, May 07, 2007

Uranium Future Opens Higher Today

I talked to one of my sources at the NYMEX. The June uranium future (the front month, or what we'll use going forward to track the price of the metal) opened at $132.05 per pound.

There wasn't a lot of activity -- it's very illiquid, as I expected. However, the contract got as high as $135. When I spoke to my friend, it was currently being offered at $137.45 and bid was at $120.

One day does not a trend make. However, if you wanted to look at this from a bullish perspective, $132.05 is way up from the recent spot price set at auction of $113. And I believe this is why we're seeing many uranium stocks head higher today.

Remember, the debut of a new future often marks an intermediate term top. Prices could go down tomorrow ... or even this afternoon. Still, if you're a bull, this is good news.

Stay tuned!


Check out my new gold and energy blog at