Uranium Fundamentals Bullish Despite Price Slump

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Is it finally time to look at uranium stocks? In early August, the bulls were drawing up plans for a march on US$200. Since then, the uranium price has fallen over 35%, which also happens to be a standard technical correction in a long-term bull market. Hmmn.

The correction in the market took all the wind out of the sails of uranium juniors. But we think that’s a good thing. Apart from some speculative forecasts on increased production in Kazakhstan, the fundamentals for uranium supply and demand are still bullish. In the juniors, it’s a question of asset quality.

We’re taking a closer look in the upcoming issue of Outstanding Investments at Aussie uranium juniors with quality in assets in States that do not require a change in political leadership for new mining to take place. Watch this space.

Dan Denning
The Daily Reckoning Australia

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
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Comments

  1. hint: buy every junior miner you can. stick $1000 in each of them and stick the scrip in the draw and forget about it. in 30 years one of them will be worth a million bucks.
    look into SAPEX, and everything in Sth Australia. IF they cazn get energy to them then they can mine it, and we are cooking. all we need is a technological breakthrough which can enable them to get the power to mine the stuff. might not be as far as we imagine. then we need a train track to get the stuff south to port lincoln. then sth australia becomes the richest place on earth.

    dubious pete in melbourne
    August 28, 2007
    Reply

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