Price of Uranium

[Mr. Now]

I bring it to your attention.

2001: $5 a pound
2006: $60 a pound (spot, as of this week)

Comments?

Long term
http://www.uxc.com/review/uxc_g_price.html

More recently
http://www.uxc.com/review/uxc_g_2yr-price.html

[Thremp]

Iran is buying up the market.

[hawk59]

The nuclear governments of the world held stockpiles of uranium and have sold that over the decades to meet military and civilian needs. The price was depressed by this selling to the point where it wasn't economical for uranium mines to operate. What's happening now is that gov't stockpiles are dwindling, which is causing the price to spike, but that also means that mining activity is coming back online and there has been lots of investment coming in.

Right now we're at something of a transition point where it's well known that gov't stockpiles are getting low, but the mining and investment has just been coming online over the past couple years. Long-term the fact is that uranium is not very rare when compared with other metals(more abundant naturally than gold, silver, and mercury). The spike IMO is short term, there isn't a shortage of uranium in the ground, just a temporary shortage of mining capacity to get it out of the ground.(

edit: There are a bunch of smallish uranium exploration & mining companies that trade up in Toronto. Looks like for the most part they rallied into the beginning of this year, fell back some, but now are taking off again. Most of the mining is done in Canada & Australia now. The wikipedia uranium article says that for a 10x increase in the price of uranium the amount that can be economically mined increases 300x.

[gonebroke]

[ QUOTE ]

edit: There are a bunch of smallish uranium exploration & mining companies that trade up in Toronto. Looks like for the most part they rallied into the beginning of this year, fell back some, but now are taking off again. Most of the mining is done in Canada & Australia now. The wikipedia uranium article says that for a 10x increase in the price of uranium the amount that can be economically mined increases 300x.

[/ QUOTE ]

A lot of the uranium stocks for the past week have been on pure fire because of a flood at Cameco's Cigar Lake mine. Cameco is the world's biggest Uranium producer and the flood will lead to a possible shortage of Uranium, hence the run up of the junior exploration stocks.

Doug Casey who has been a Uranium bull since it was $7/pound, believes it will far exceed $100/pound. I have been following him for several years and I agree with him on his conclusion.

[hawk59]

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edit: There are a bunch of smallish uranium exploration & mining companies that trade up in Toronto. Looks like for the most part they rallied into the beginning of this year, fell back some, but now are taking off again. Most of the mining is done in Canada & Australia now. The wikipedia uranium article says that for a 10x increase in the price of uranium the amount that can be economically mined increases 300x.

[/ QUOTE ]

A lot of the uranium stocks for the past week have been on pure fire because of a flood at Cameco's Cigar Lake mine. Cameco is the world's biggest Uranium producer and the flood will lead to a possible shortage of Uranium, hence the run up of the junior exploration stocks.

Doug Casey who has been a Uranium bull since it was $7/pound, believes it will far exceed $100/pound. I have been following him for several years and I agree with him on his conclusion.

[/ QUOTE ]

Then what? Uranium is just not that rare, production is on its way up and will continue to increase if the price stays around where it is now. Australia is the 2nd largest uranium producing country in the world after Canada and in the past 4 yrs they've increased production by 50% and there is a lot more coming online.

[gonebroke]

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edit: There are a bunch of smallish uranium exploration & mining companies that trade up in Toronto. Looks like for the most part they rallied into the beginning of this year, fell back some, but now are taking off again. Most of the mining is done in Canada & Australia now. The wikipedia uranium article says that for a 10x increase in the price of uranium the amount that can be economically mined increases 300x.

[/ QUOTE ]

A lot of the uranium stocks for the past week have been on pure fire because of a flood at Cameco's Cigar Lake mine. Cameco is the world's biggest Uranium producer and the flood will lead to a possible shortage of Uranium, hence the run up of the junior exploration stocks.

Doug Casey who has been a Uranium bull since it was $7/pound, believes it will far exceed $100/pound. I have been following him for several years and I agree with him on his conclusion.

[/ QUOTE ]

Then what? Uranium is just not that rare, production is on its way up and will continue to increase if the price stays around where it is now. Australia is the 2nd largest uranium producing country in the world after Canada and in the past 4 yrs they've increased production by 50% and there is a lot more coming online.

[/ QUOTE ]

According to Cameco, the world's largest uranium producer, global uranium demand is now 175 million pounds a year. Mine supply is only 110 million pounds yearly. Factor in the flood at Cameco's Cigar Lake mine and now that supply is a lot lower. Uranium is going to triple digits, it is currently at 60 dollars a pound. Here is a link to 3 stocks:

http://finance.yahoo.com/q/cq?d=v1&s...o+ure.to+cxx.v

My favorite one is Ure.to (uregf.pk - for american brokerages). I own it and expect it to hit 10-20 dollars with a few years.