It isn't a substitute commodity. Uranium can only be used to generate
electricity (and only baseload at that); oil is mostly used for
transport or (in some locations) space heating.
But maybe most investors don't understand that... Certainly the price
of natural gas seems to follow that of crude oil despite being mostly
used for quite different purposes. I asked an economics professor to
explain it and basically he couldn't do so in any way that made sense in
terms of the actual facts of energy use.
Mark
Dave Hall wrote:
>On Wed, Mar 28, 2007 at 05:28:48PM -0400, seanc@unixgeeks.ca wrote:
>
>
>>That said, it was interesting to see a post on Slashdot today talking
>>about the skyrocketing costs of uranium in the last couple years. This
>>graph looks lovely: http://www.uranium.info/prices/monthly.html
>>
>>
>
>That graph curiously mimics the nominal price of crude oil:
> http://tinyurl.com/27hvbw
>
>Not surprising for substitute commodities.
>
>
>
Received on Wed Mar 28 22:30:35 2007
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