A year ago the outlook for uranium was bullish but now the price has fallen out of bed to hit US$67/lb. What a contrast to the performance of gold over the course of a year!

I previously suggested that there were some fun and games whereby the uranium ETFs got set in stocks and then pumped the spot price, leaving Johnny Public as the sucker. I still believe that is what happened then, and will happen again, but for the moment there is a new narrative. The news of the allegedly lower cost, more efficient Chinese AI chip has had an immediate effect on uranium share prices as people took the view that the demand for nuclear power would be reduced as result. Maybe it will, maybe it won’t. Whatever, the reaction has coincided with weaker uranium prices. 

Gold is going up. No-one should be surprised that gold surged through US$2,880/oz during the week given the maxim that the trend is your friend. The junior mining sector has been offered the greatest lifeline for decades when you consider how many companies have projects, even small projects now have viable development options. Gold projects are much simpler to finance than any other commodity as gold is literally money in the ground.