RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:2023I have no objection to that gdawgs54. These are simply my opinions drawn from a great deal of homework on this subject. and I welcome having those opinions challenged. As always investors need to decide for themselves whether Uranium and the commodities market in general is the right vehicle for them. There are many variables at play and political as well as financial considerations must be taken into account when evaluating risks to ones money. As I noted in the piece I wrote yesterday, Junior miners in any commodity are risky investments for the average investor and should be undertaken only if you know what you are doing and understand the risks. But against that there is also the potential for outsized rewards. Juniors are companies that only spend money and do not make any. They do not pay dividends and their survival depends on bankrolls from large outside investors. So as long as investors understand the risks and are prepared to wait...perhaps years...then the rewards in my view will be worth it. During that period of course companies can run out of money or be bought out or dilute shares of existing investors to raise capital so there are significant risks.
On the other hand shares in these companies can increase many times in short periods. Some Uranium Junior companies last time around went from 1c to $10 which would turn a $1000 investment into $1,000,000 so the gains can be spectacular.
Of course if you did not get out of the market at the right time those gains turned to dust.
So while I have no doubt that the Uranium market is in for some substantial gains in the next few years investing in this space is not without risk. So do your homework. Know the risks and allocate your portfolio funds accordingly. Never never ever ever put all your eggs in one basket...as tempting as that may seem it is not a wise wealth building strategy.
Having said all that selecting the right Juniors at attractive prices well before the herd realises what is happening is one way to multiply your investment dollars. It is the type of investing I like to do but certainly not where all my investment dollars are located. Contrarian investors should be aware of the risks. Uranium is an especially risky commodity because it is affected so much by political events. For example a decision by China not to build any more nuclear reactors would upset the market considerably so you need to decide what the likelihood of that is as well as look at all the other factors involved.
Fundamentally the world needs vast amounts of electrical energy and it appears to be the world consensus, expressed through the Paris Accord, that this will be accomplished without further CO2 emissions. There is no way that can be done without nuclear power and that means demand for Uranium must increase. Fusion power is on the horizon but still many years away from commercial utilization and renewables cannot meet these electrical energy demands. It is against that backdrop that your investments in Uranium shouild be made.
Hope that helps but by all means share my thoughts.
Malcolm