Supply Crunches Will Add a Glow to Uranium Stocks

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...Market fundamentals point to demand-driven price increases for uranium. And history shows that when uranium prices move higher, uranium stocks almost always tag along for the ride.

Of all the commodities to ride the volatile global roller coaster in 2007, uranium had the wildest ride. Overall, it gained 28% for the year. But that seemingly simple statistic masks a much-more-complex story.

At one point in June, uranium had gained 84% on the year. But then a mass sell-off - including up to 200 tons auctioned off out of the inventory of the U.S. Department of Energy - drove prices from $138 a pound down to $75 a pound in just three months.

...Market fundamentals point to demand-driven price increases for uranium. And history shows that when uranium prices move higher, uranium stocks almost always tag along for the ride.

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