Invest Now and Wait
Uranium - A Sector Powering Ahead
Prior to the tragic earthquake and tsunami in Japan the factors pushing uranium prices higher included the 443 reactors in operation worldwide and the 62 under construction. Today there are 432 nuclear reactors safety operating and 63 reactors are under construction.
In 2010, about 180 million pounds of uranium was consumed globally. However, only 130 million lbs was produced by uranium mines. This means that only 2/3 of uranium demand is being met by mine supply. The balance is made up for by secondary supplies like the US-Russian HEU Agreement. This agreement, which expires in 2013, supplies 13% of world's or 45% of U.S. annual uranium needs! This agreement still expires in 2013, while uranium consumption is expected to reach 230 MM lb per year by 2020.
There's simply not enough uranium coming from the world's mines right now to supply the current power plants across the world, let alone the next 63 under construction, and the further five hundred planned and proposed. Post Fukushima plans have been announced by the UK, US and Saudi Arabia to build new reactors whilst China, India and Russia, who represent 50% of new build, have all reaffirmed their support for Nuclear Energy.
Uranium stock prices are down and this presents a special investment opportunity.