When Is the Uranium Price Going Up?

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Many mining analysts see uranium as one of the best metals going forward, but there is little consensus as to where the spot price will be or what the growth potential might be for the uranium stocks...

Retail investors made hundreds of millions of dollars on junior uranium stocks from 2005 up until this past summer. Many of our readers have taken profits and are now holding shares for long term growth. But with the recent market meltdown, what does the future hold? Is the uranium bull market finished or will these beaten down stocks come back?

I recently interviewed people in the physical uranium market to find out what is happening behind the scenes – and to try to get a handle on where the uranium price might be going over the next year or two.

What I found out is that the uranium market is very complex. The uranium price is not set from what I call a free market. There are few buyers and even fewer sellers. Both sides will tell you a much different story of what’s happening in the marketplace. Each side has their story and they try to sell you on their position. As a result, most analysts, newsletter gurus, and even uranium exploration companies are not clear on the market dynamics.

Many mining analysts see uranium as one of the best metals going forward, but there is little consensus as to where the spot price will be or what the growth potential might be for the uranium stocks. I therefore interviewed a number of insiders to conduct my own research...

Some of the information we uncovered startled me. Did you know that western utilities generally only have one year’s inventory? European utilities have two years, Asians generally want three. But nobody has five years, despite what many uranium promoters will tell you. I was stunned to hear how the producers and consumers of uranium have completely different interpretations of supply/demand data...

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