Well, you have to stick with what you know. I've been following the uranium story since 2004 and am comfortable with it. Unlike any other commodity I know of, uranium has marched from $7 to $55 without a single pullback. It's leveled off at times, but other than that, it keeps plowing ahead.
The juniors, on the other hand, are about 50-70% off of their highs, trading along with the PM complex, apparently (same group of investors, I believe). I think the fundamentals are very solid for the next couple of years. The market could go into surplus for a year or two after than and then it will go into deficit for several years after that.
As far as investment criteria, it's very similar to seeking out quality PM juniors. Experienced management, quality properties in secure areas of the world, cash in the bank, established resources or reserves (when possible) with exploration upside potential.
Still many years to go, so plenty of time to take a position if it ever strikes your fancy. |
