Resources

Here you will find some information and links to other sites that will get you up to speed on Uranium investing.

What you need to know:

1. Uranium is in a deficit. Which means: there is less Uranium mined than is consumed. This is of course only possible because there are stockpiles of Uranium that are currently sold to make up for the deficit in production. The expectation is that the stockpiles are about to run out creating a true shortage.
2. To the utilities that operate nuclear reactors, the price of uranium is very low as compared to other operating costs. This means that they can afford higher Uranium prices without having to charge their consumers steep price increases. When the choice is between "lights out" and paying higher prices, they do not have to think long.
3. Uranium is difficult to find in high concentrations, and environmental regulations make opening new mines a time consuming undertaking. Lag times from discovery to mining may take as long as 10 years.
4. There is no futures market in Uranium. This means that the price of Uranium has a different characteristic than other commodities that do have a futures market. It is set exclusively by supply and demand of the physical commodity
5. The price of Uranium has run up from about $8 in 2001 to about $85 in Feb 2007.
6. Uranium mining stocks are volatile. A 10% daily move is common. Thus it takes a strong stomach at times to stay invested. If you loose sleep over your investments, you have invested too much.

How to invest in Uranium?

It is actually possible to invest in physical uranium, but more common is to buy stocks from uranium exploration or mining companies. To get a lead on what uranium companies are available, check out the next bell-post "Uranium Stocks".

The Uranium Participation Corp (ticker: U.TO chart) is the way to invest in physical uranium. This company does nothing else but to buy and store uranium. It currently has 4.2M pounds of uranium oxide and 920 tonnes of uranium hexafluoride stored. The company publishes its NAV on its web page. It usually trades at a premium over NAV.

Resources

The "spot" price of Uranium is published by: UxC

Another price of uranium is published by: Tradetech (Lots of other uranium related info)

The uranium index of: Stockinterview (Presents a list of uranium mining companies)

Huge amounts of information, sometimes very technical: WISE Uranium Project

News site on mining in general: ResourceInvestor

General articles and stock picks by: Uranium-Stocks

Edited 4 time(s). Last edit at 03/13/2007 03:00PM by Rien.