Tuesday

Uranium Stock Investments

I as many others believe that the market of upcoming years will reap great profits through Uranium. A high demand and low supply ratio is currently skyrocketing the price of uranium. As the price of this precious metal rises, Uranium producing companies will reap great rewards for their investors.

*Uranium = Raw material needed for Nuclear energy production.

There are 3 major reasons for investing in uranium

1) The United States government is attempting to eradicate its foreign oil attachment. There are a few alternatives to oil, including natural gas and coal; both of which are much more expensive than Nuclear Energy. In addition, coal causes air pollution and the newly appointed Democratic House and Senate are all for making our air cleaner. Therefore, there is a posibility that the United States of America and other countries could start building more Nuclear Power Plants. Although the chances of America building more nuclear power plants is quite a strech, many of the older plants are increasing their efficiency and using more uranium.

2) Second Reason = China. This booming nation’s population is skyrocketing and so are its demands for energy. China is choosing to solve this problem using Nuclear Energy. China has also made plans to build 30 power plants by 2020. More power plants mean more uranium demand, and more uranium demand means rising prices of Uranium, which means great profits for Uranium producing countries. As more and more countries follow China’s example the bull market for Uranium will surge.

3) Lastly, Uranium production is becoming much safer and cheaper than ever before. The accident at three-mile Island has halted increased production of Nuclear Power plants in the US. But this alternate energy source is becoming so cheap and safe that it will be hard for the United States to ignore this Energy source any longer. As more and more countries go to Nuclear energy, Uranium producers will enjoy a big hike in demand, leading to even more profits.

In Conlusion

The whole world is attempting to feed its increasing energy demands. And as a vast amount of countries try finding ways to become less dependent on the Middle East for oil, Nuclear energy will prove the best solution. As Nuclear Energy becomes more and more of a player in the energy sector the bull market for Uranium will flourish.A plethora of good Uranium producers are out there. It’s just all about buying the right company's stock.

1 comment:

Unknown said...

Uranium is definitely on my hot list as of late. I like it long term projections being a macro thinker and its low supply but high demand will shoot its prices right up in the commodities market. Just take a look at this link of a report i found on it...

Uranium Investing Report

-Cheers!