Investing in Uranium: $113 and Rising...
By Ian L. Cooper
The price of uranium has soared by almost 20% last week, to a record $113 per pound, thanks to the continued lack of supply and an increasing demand in nuclear energy as a alternative green fuel.
“The surge in the uranium price takes it to the highest level since the 1970s,” says GRESSOR’s Chris DeHaemer. “Analysts are coming out of the woodwork to predicted that prices could reach $125 a pound this year and $140 a pound in 2008. I’ve even seen articles talking about $1,000 uranium. But that’s absurd. Somewhere around $500 a pound it would make more sense to run powerplants on natural gas. Anyway, it good news for us Uranium bulls.”
This time last year, uranium prices were up about 70 cents a week. Now, according to reports, spot prices for uranium are soaring some $2.73 a week. And it’s only expected to get more expensive thanks in part to supply disruptions.
Cameco Corporation, for example, said that an October flood at its Cigar Lake uranium project would delay production until 2010 (two years later than hoped). Even Energy Resources of Australia, which produces 10% of global uranium reported that its Ranger Mine may “have as much as a third less output next year because of heavy rainfall, according to Bloomberg.com.
The GRESSOR team is so bullish on uranium that’s it’s compiled a report of five must own uranium stocks at http://www.gressor.com under the Reports tab.
Take care,
Ian L. Cooper, Editor, GRESSOR
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