| Uranium offers traders a little bit of walking on | | | | There even seems to be some changes for the |
| the wild side. It is a volatile commodity, but worth | | | | United States on the political horizon a one time |
| the risk if you can afford it. A few years ago, | | | | adversaries are finding common ground and |
| Uranium prices exploded, then dropped to $29 | | | | passing the peace pipe, so to speak. |
| just as quickly, then it skyrocketed back up, | | | | Environmentalists are beginning to see the light |
| hitting $45. This volatility makes oil prices look like | | | | and grasp the concept that nuclear power offers |
| a walk in the park, but in recent years, uranium | | | | one of the best alternatives to continued fossil |
| prices have been on a steady rise. | | | | fuel use, particularly as concerns over global |
| Uranium has many natural advantages over oil or | | | | warming increase. Also, as oil prices continue to |
| other energy sources. Fuel that is produced from | | | | rise, the political powers that be seem to be |
| uranium lasts for decades and can be recycled in | | | | swaying more in favor of nuclear power. |
| the form of plutonium which extends it life for | | | | While demand continues to rise, supplies remain |
| even more decades. This, however, can present | | | | tight. Commercial stockpiles fell 50% from 1985 |
| a problem because of its extensive life, disposing | | | | to 2003 and mining remains expensive and |
| of uranium is a political caveat. | | | | difficult. |
| Nuclear power supersedes oil and chemical | | | | The Australian mining company, Cameco, is one |
| refineries in safety. The safety record of nuclear | | | | of the largest uranium suppliers in the world. It |
| power far exceeds other large scale energy | | | | plans to expand its production by 18$ in Canada's |
| generation technologies. Oil and chemical refineries | | | | MacArthur River mine which is currently the |
| can and have exploded due to human error, | | | | largest in the world. |
| accident and incompetence. Regulations and | | | | Although supplies are not expected to expand |
| controls regarding the use of nuclear fuel are | | | | enough to rise to the growing demand to a point |
| much more stringent and adherence is more | | | | that would suppress the price, it is still a viable |
| strongly enforced that with conventional fuels. | | | | option. Several analysts expect that supplies will |
| Nuclear power is a politically charged, controversial | | | | remain tight over the next decade. This will result |
| topic. One camp has it labeled as dangerous and | | | | in a rise of prices to a level that has not been |
| even evil. The other camp, though, purports that | | | | seen since their peaks in the 1970s. These prices |
| nuclear power safely generates 16% of the | | | | are expected to remain high for quite some time. |
| world's electricity. Countries such as France and | | | | Demand runs annually at about 170 million pounds |
| Japan have relied heavily on nuclear power for | | | | while the supply is roughly 75 million pounds a |
| many years and neither country holds any | | | | year. The deficit is made up by supplies that are |
| regrets for electing to use it as their major | | | | stockpiled from the 1970s, the dismantling of |
| power source. 78% of France's electricity comes | | | | Russian nuclear warheads and other sources. That |
| from nuclear power and, most notably, has never | | | | supply, however, is dwindling. |
| experienced a serious incident. | | | | Fuel costs are relatively small expenditures for |
| Asia is experiencing exponential growth in the | | | | power plants, but fuel it vital to their operation. |
| area of power plants being built, but this is also | | | | Because there is no substitute, they can not |
| occurring worldwide. China is working on an $8 | | | | afford to run out. |
| billion contract to build four new plants and will be | | | | These various factors are exceptionally appealing |
| constructing 27 by the year 2020. India plans to | | | | to metals traders who may be interested in |
| build 17 plants by the world 2012 which will triple | | | | uranium. Unlike other metals, uranium does not |
| their existing capacity. Russia has reduced its | | | | trade on the open market. Contracts are made |
| exports so that it can retain fuel for the 25 new | | | | privately. However, investors who are interested |
| plants that are planned by 2020. | | | | can purchase mining stocks, futures contracts, |
| The majority of these plants have yet to secure | | | | options and other securities just like any other |
| a long term supply which indicates that they will | | | | investment. A broker can provide advice and |
| have to pay market prices as they near | | | | direction on this trading maneuver. |
| completion. | | | | |