Rick Rule General commenthttps://ceo.ca/2015/09/08/will-resources-see-a-v-shaped-recovery-after-capitulation-rick-rule-responds-to-your-questions/
What about uranium?
“I believed that uranium would have recovered by now,” he says, “because I didn’t realize how soft global economic growth would be. The Japanese didn’t need to restart their nuclear reactor fleet as urgently as expected because their electricity consumption has been subdued and natural gas prices remain tepid.
“Cheap natural gas and soft power consumption have allowed the Japanese to delay re-starting their nuclear power plants – preventing a price recovery for uranium,” Rick explains.
Still, uranium will eventually return to favor, he believes, as “nuclear power is here to stay and demand for uranium will return over time.”
Should investors be interested in early-stage exploration companies – where a company has a few drill holes but no proven deposit?
“If you can afford the risk, speculating in exploration can be extremely rewarding,” says Rick, “but it also fails to produce a valuable discovery most of the time and still costs you money.