by Jerry Robinson | FTMDaily.com, Editor-in-Chief
HOUSTON, APRIL 19 – The spot price of uranium has recently been trading around $50 a pound, which is very low, especially when compared to the $130+ levels witnessed back in 2007.
Uranium prices, however, should begin heading higher in the months to come, as supply is expected to outstrip demand.
According to the World Nuclear Organization, there are currently 435 operable reactors worldwide. There are 61 reactors under construction globally, 26 of which are in China and 10 are in Russia. Another 162 reactors are in the planning stages or have already been ordered. Of these, 51 are in China, 17 in Russia, and 16 in India.
New sources of uranium will be required to fuel these reactors. But given the current low prices in uranium and the tight financial environment, it is unlikely that a plethora of new uranium mining activity will occur before prices rise significantly.
Our price target on uranium is $68 per pound by December 2014.
My favorite ways to play this market would be a mixture of the Global X Uranium ETF (ticker: URA) and the top uranium mining company, Cameco Corporation (ticker: CCJ)
The above article is an excerpt from our Spring 2012 FTMQuarterly Investment Newsletter. To read the entire newsletter, click here.
Jerry Robinson is a leading authority on the petrodollar system and global economic issues. He has spoken on the petrodollar system and global economics around the United States, in Europe, and in the Middle East. He is an Austrian economist, published author, columnist, international conference speaker, and the editor of the financial website, FTMDaily.com. In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, an hour long radio show dedicated to deciphering the week’s economic news. For media inquiries, click here.