• 526 days Will The ECB Continue To Hike Rates?
  • 526 days Forbes: Aramco Remains Largest Company In The Middle East
  • 528 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 928 days Could Crypto Overtake Traditional Investment?
  • 932 days Americans Still Quitting Jobs At Record Pace
  • 934 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 937 days Is The Dollar Too Strong?
  • 938 days Big Tech Disappoints Investors on Earnings Calls
  • 939 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 940 days China Is Quietly Trying To Distance Itself From Russia
  • 941 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 945 days Crypto Investors Won Big In 2021
  • 945 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 946 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 948 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 948 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 952 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 952 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 953 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 955 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Uranium Update

"Opportunity often comes in disguised in the form of misfortune, or temporary defeat." -- Napoleon Hill 1883-1970, American Speaker, Motivational Writer, "Think and Grow Rich"

A very interesting anomaly is that while uranium stocks have corrected quite severely the same cannot be said for bullion. Let's take a look at two different charts.

The first chart is a roughly a 20 year chart of Uranium and we can clearly see that this market is in a super bullish phase. The current prices are setting new records almost on a daily basis; the second chart quite clearly illustrates this. As we speak more and more nations are embracing nuclear energy and current demand for uranium is 50% higher then the current supply; imagine what could happen in the years to come when all those new nuclear power plants come online.

The Table below clearly illustrates the incredible run in prices and it appears that there is no sign that prices are going and traded as high as 54 in the month of September.

   2002  2003  2004  2005  2006
Jan $9.70 $10.15 $15.55 $21.10 $37.50
Feb $9.93 $10.15 $16.63 $21.75 $38.63
Mar $9.83 $10.10 $17.63 $22.55 $40.75
Apr $9.90 $10.88 $17.68 $25.00 $41.50
May $9.90 $10.95 $17.80 $29.00 $43.00
Jun $9.90 $10.90 $18.50 $29.00 $45.75
Jul $9.85 $11.05 $18.50 $29.50 $47.38
Aug $9.85 $11.30 $19.63 $30.10 $50.25
Sep $9.75 $12.23 $20.00 $31.63  
Oct $9.90 $12.73 $20.23 $33.25  
Nov $9.88 $13.75 $20.50 $34.75  
Dec $10.20 $14.45 $20.60 $36.38  

http://www.cameco.com/investor_relations/ux_history/historical_ux.php

At the Tactical Investor we refer to such anomalies (price of bullion keeps rising but stocks in the sector are correcting) as Intra market positive divergences; such developments are usually a very bullish long term signal. This suggests that the reason for the correction in Uranium stocks is just normal profit taking. The masses are being led astray as usual and will most likely sell exactly when they should be buying. We view Uranium as must long term buy and everyone should have some exposure to this sector. However remember as with any other sector not all stocks are good to buy at the same time. Some have already experienced huge run ups and are ripe for even further consolidation. One must tread carefully and remember the saying "the road to hell is paved with good intentions".

"Four things come not back. The spoken word, the sped arrow, the past life, and the neglected opportunity." -- Arabian Proverb Sayings of Arabian Origin

Related articles:
The potential emerging energy crunch part II
The Potential emerging energy crunch
The Uranium Story

 

Back to homepage

Leave a comment

Leave a comment