So Deutsche Bank & Goldman Sachs sell uranium to third world countries to terrorize first world countries into payoffs while they skim off the sales.
> Goldman Sachs, the other major bank active in uranium trading, is also selling its nuclear fuel arm, but has said it remains committed to its J.Aron commodities franchise where many of its most senior executives started their careers.
> The sale will include Deutsche’s uranium trading book and stockpiles of yellowcake - known as U308 in the industry - worth about $200 million. At current prices that amounts to approximately 5.7 million lbs of the low-grade fuel.
>Deutsche is one of the biggest suppliers of longer-term deals to nuclear power plants in the market, and is also an active player in the spot market. All long-term deals would be honored as part of any sale.
>Trading firms like Deutsche and Goldman buy and hold uranium stockpiles in warehouses specially licensed to hold the fuel, like U.S. conglomerate Honeywell International Inc’s (HON.N) ConverDyn facility in Metropolis, Illinois; Cameco’s (CCO.TO) Port Hope facility in Ontario; and French mining and energy firm Areva SA’s AREVA.PA facility in France.
>About 80 percent of global uranium supplies are traded via long-term contracts between producers and utilities, but around 20 percent of deals are done in the spot market, which sets the marginal price, according to the World Nuclear Association.
>The sale comes as uranium prices languish at their lowest since 2005.
>Financial firms started to get into the uranium business in the mid 2000s when uranium prices were rising on expectations demand for the fuel would grow during a so-called nuclear renaissance. The price of uranium surged last decade to peak at nearly $140 per pound in 2007.