Findprofit.com has been keeping an eye on the metals markets recently, as gold and silver have been making numerous headlines. But while the glitter of precious metals has been garnering much of the attention, the best-performing metal over the past year has been putting up downright glowing returns.
That metal is uranium, which is up about 70% since April 2005 and has almost doubled in price over the past 15-16 months. The radioactive metal used in the production of nuclear power has been surging as countries look to build more reactors to meet their growing energy needs.
. . . .Compared to other metals whose prices are surging, uranium has a few characteristics that make an investment in miners focused on the metal more attractive than other miners.
First, unlike other metals such as gold and silver, uranium has few alternatives that end users can turn to. Second, once demand increases, it is difficult for it to decrease, as once a country spends the money on building a nuclear power plant, it isn't going to take it offline anytime soon. Thus, while uranium is not scarce or a store of value like precious metals, the demand side of the equation should not vacillate. Conversely, consumers' tastes in jewelry or industrial users switching to cheaper alternatives, such as using palladium instead of platinum in catalytic converters, could affect the demand for other metals.
That metal is uranium, which is up about 70% since April 2005 and has almost doubled in price over the past 15-16 months. The radioactive metal used in the production of nuclear power has been surging as countries look to build more reactors to meet their growing energy needs.
. . . .Compared to other metals whose prices are surging, uranium has a few characteristics that make an investment in miners focused on the metal more attractive than other miners.
First, unlike other metals such as gold and silver, uranium has few alternatives that end users can turn to. Second, once demand increases, it is difficult for it to decrease, as once a country spends the money on building a nuclear power plant, it isn't going to take it offline anytime soon. Thus, while uranium is not scarce or a store of value like precious metals, the demand side of the equation should not vacillate. Conversely, consumers' tastes in jewelry or industrial users switching to cheaper alternatives, such as using palladium instead of platinum in catalytic converters, could affect the demand for other metals.
