Saturday, June 18, 2011

Uranium - The Fuel of the Future

Uranium - Fuel of the Future?

Are fears over another Fukushima/Third-Mile/Chernobyl nuclear accident overblown and thus, a buy opportunity for Uranium related stocks?

In recent days, Uranium and its related shares (read: uranium miners) have taken a beating. Who can blame them after the Japan Catastrophe and the following backlash against nuclear energy.

Yet, you still have the former world's richest man, Bill Gates advocate that it will be Nuclear not Green Technology which can save the world from global warming by reducing carbon admission to 0%. Basically, his message is that a tremendous change has to come and most likely it will come from Nuclear Energy not Green Technology which may sound good but does too little good.

Read more here:
http://articles.cnn.com/2010-02-17/tech/bill.gates.nuclear_1_nuclear-reactors-nuclear-power-plant-nuclear-energy?_s=PM:TECH
Also, the Ted Vid: http://www.ted.com/talks/lang/eng/bill_gates.html

Demand-side there is another concern- Germany is phasing out all of its nuclear energy and this would reduce demand for uranium goes the bears.

Yet, India and China are still going overdrive into nuclear energy. It will come a day when China will be churning out one nuclear plant every two weeks. Read bloomberg here - "China and India will lead a 46 percent increase in consumption by the world’s five biggest atomic-power developers by 2020, according to data compiled by Bloomberg. "

On the supply side, the supply of uranium from decommissioned weapons will be reduced after 2013 from Russia.

Give these two separate demand and supply dynamics, are people just over-reacting and reeling from the Japan Nuclear/Tsunami disaster and the policy knee-jerk, perhaps uranium is a Buy Opportunity.

Until another fuel substance than can trump Uranium comes along, I'm inclined to think so, yes, buy.

For deeper Uranium-themed investment ideas, read Howard Ruff's opinion on the Ruff Times here.

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