My husband told me to ask.....?

Question

Does anyone think that uranium will hit $200/ounce in the next couple of years?


(Ps, I usually post in Marriage/Divorce...is it any wonder?)

Answer 1

Oh, definitely, but then our dollar will also be quite a bit cheaper too. Um, you might ask him what it would matter? You don't buy uranium like gold or silver (if he does you need to call the FBI and get the, eh, heck out of that house). We are more likely to build another oil refinery before we will build another nuclear reactor, and neither one is likely to happen soon. A very high price of uranium reduces the demand for uranium (remember supply and demand), so a super high price means more nuclear power plants will be shuttered (usually the ones that needed to have been in the first place)--which means demand drops. If demand drops, then the call for it diminishes the support for your expensive non-commodity.

Tell him he needs to be shopping for technology companies that process it rather than mining companies that dig it. Whatever the price of uranium, they will be the ones making money by making it usable.

Answer 2

It is definitely possible. With a possible arms race on the horizon ( because of the belligerent action of Iran, and Russia ), I would believe that the nations of the world will be upgrading their nuclear stockpiles.

In addition, as Oil & Gas gets more scarce and expensive, and with guys like Chavez slowing down the supply, the need for nuclear generation of electricity becomes more urgent.

However, the road to $200/oz uranium will be fraught with lots of volatility, and unlikely to be within the next 2 years as per your question.

I suggest not putting more than 10-15% max of your investment into this area.

Answer 3

Dude... My Aunt Bertha seems to think so.