Uranium is Ready to Roar Back

Posted by Stephan Bogner via Resource Investor

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Buy when there is blood in the streets – Baron Rothschild – Ed Note: This is contrarian investing at its heart – the strongly-held belief that the worse things seem in the market, the better the opportunities are for profit. Fortunately in the Uranium market there are a broad variety of investments you can make from dividend paying blue chip stocks like Cameco Corporation which is the world’s largest publicly traded uranium company right through to a large number of higher risk Junior Mining companies buying properties and striving to find the next big Uranium mine while the price of Uranium is trading at a mere 25% of what it was in 2007.

Fundamentally driven

As outlined in our previous articles in November and December, we anticipate uranium prices to improve significantly in 2014 for a number of reasons. Today, the fundamentals for uranium and nuclear power generation are stronger than ever. More reactors are under construction, planned and proposed than before the Fukushima incident. 

For uranium prices to appreciate in the foreseeable future, one must look not only at the reactors under construction worldwide, but the ones coming online soon. China has 28 reactors under construction, yet 5 are ready to be connected to the grid this year. Japan has submitted applications for 17 reactors to be restarted, whereas analysts are expecting at least 6-8 reactors to be granted permission for restart in 2014. Both China and Japan are set to add vast amounts of demand back into the uranium market.

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