us govt selling uranium stockpile starting first quarter of 2011
I'm with you. None of this makes sense. Like I said, I smell a rat. Why is DoE re-releasing info that was known in 2008? It's obviously to keep the price down. The US would very much to keep the price down in order to buy some in the future. But if they are selling NOW, wouldn't they want the price to go up? the timing just doesn't make any sense to me.
You guys are reading way too much into these news bits and pieces and you are manufacturing relations that most likely don't exist. This is always the favorite sport of the masses and the media. What the US government does has absolutely nothing to do with market forces, they are not in it to make a profit, and they don't care much about losses, their stockpiles were accumulated over decades. Since when is the government doing something that is market smart? We would not have this economic mess if that were the case.
The uranium market is pretty small and of course any release from military stockpiles would affect the price. Those are big holdings, when the Russians started their agreement to sell theirs it contributed greatly to the decline of 2007.
Uranium markets are just like any other market, they go up and consolidate, no matter whether there are long-term shortages or not. It doesn't matter short-term and that means on the order of 1 or 2 years. The huge demand for uranium is projected for coming decades, 10,20,30 years, not months or years.
Much of the rise in commodity prices recently can be attributed to a weak dollar, that is about to change and will take commodities much lower and uranium is not an exception. Today's market weakness on the open is a good example, the dollar has gone up over half a percent since yesterday, and it's likely to rise 10-20% over the coming months. Don't believe what all the dollar bears are saying right now, there is hardly anyone left with money to short it further.