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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: I_C_Deadpeople who wrote (10303)	4/12/2007 1:55:31 PM
From: Tommaso	Read Replies (1) \| Respond to of 30242

Uranium is also different from oil, in that there is already nearly a 40% shortfall in production from what is being consumed--with additional consumption being constantly added. It does seem likely that uranium prices will flatten out at some level, when a lot of formerly uneconomic deposits begin to show production. But that will take several years. For several decades, OPEC has been in the position of creating an oversupply of oil at any time; even OPEC countries were constantly cheating on each other and overproducing. That's almost stopped, but that accounted for a lot of the violent movements in oil prices. There is simply no way that any uranium producers can flood the market with their product. Sales of former warheads from Russia have kept the price down, and the U.S. has a big strategic stockpile of uranium, but those are one-time (and not very reliable) sources of fuel for reactors. The real promise of uranium as an investment is in the major companies, especially Cameco and ERA (Australia), which have the production capacity and the markets, but which are committed for several years to give away uranium at $20 a pound. When these hedges are all worked off, money will pour into these companies and their profits will multiply several times over.