Uranium - Why Uranium Mining Stocks Will Be a Great Investment for the Next Few Years


by John Derrick Hughes - Date: 2007-03-02 - Word Count: 334 Share This!

I believe that shares in uranium mining and exploration companies will be excellent investments for the next few years. The reason is simple: oil is a declining resource. There have been no significant new discoveries of oil anywhere in the world in decades. Eventually oil will run out, probably sooner than we think. We won't run out of oil tomorrow, but it will happen over the next few decades.

Since battery storage is not developed enough to switch to solar power, and since no-one wants a windmill farm in their backyards, we are left with nuclear power as the only logical future energy source.

Nuclear power has three obvious advantages: First, it's clean. It produces no smog or greenhouse gases. Obviously it does produce radioactive waste, but as technology improves we are able to increasingly utilize what used to be considered spent fuel, and all of the radioactive waste produced from all of the nuclear reactors currently in use could be stored in a few large buildings.

Second, it's plentiful. Rocks containing uranium are found on many places on earth, and because great quantities of uranium are not required to fuel a nuclear reactor, it is estimated that we have enough uranium on earth to last for at least the next few hundred years.

Finally, there are large concentrations of uranium in places like Canada and Australia, two very friendly countries. For all of these reasons, uranium mining companies will be great investments for many years to come.

While uranium is plentiful, it takes many years to bring new mines into production, so it is likely that the demand/supply imbalance will not end until approximately 2015 when new mines are in full production. Of course every exploration company does not become profitable, so when investing in junior uranium companies it is essential that risk is minimized by investing in a basket of stocks, such as those recommended on web sites that feature uranium mining companies like http://buy-high-sell-higher.com. Uranium stocks are very volatile, so do your due diligence before investing.


Related Tags: stocks, investing, uranium, uranium investing, stock recommendations

John Derrick Hughes is a pseudonym for the guy who writes the http://www.buy-high-well-higher.com blog, dedicated to finding well performing stocks that will go even higher. He has written a detailed article on The Case for Uranium, must reading for all stock market investors.

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