Monday 22 October 2007 (11 Shawwal 1428) Mail Article | Print Article | Comment on Article The Time Is Ripe to Invest in Uranium Mohammed Habeebulla If investors in oil are reaping the benefits of current oil process, it’s about time to have a look at uranium as a commodity for future growth. One would have to go back 63 years to see a world as starved for commodities as it is today. China, India, Brazil, Mexico even the US and Japan are outstripping uranium reserves as fast as they can be produced. And as the global bonanza for commodities is getting more intense by the day, in just over two years alone, copper’s shot up 159 percent, aluminum is up over 75 percent, zinc has popped 302 percent, nickel’s jumped 206 percent, OIL’S climbed 111 percent. Even lead has spiked 211 percent in the past 12 months. Right now, one commodity is about to climb faster, longer and steeper than any of these. It’s a commodity that’s starting a breakout that could quadruple in price in the short and medium terms driving it up another 400 percent plus. Investors may have an opportunity to multiply their money if the current trend continues. Right now there is a shortage of uranium in every industrialized country and yet there’s little supply to go around. A recent report from the Asia Pacific Foundation of Canada forecasted a 45,000 metric ton shortage in the near future that could wipe out 16 percent of the world’s power for over six months. In the past 12 months alone, the supply of this precious commodity has already fallen short by 60 million pounds. And production is limited for years to come. The world’s leading energy association estimates that it takes eight years for new mining and production of this fuel to get “online” and ready for power plants across the globe. Investors who understand the size and scope of this situation are about to be rewarded handsomely — and soon, because this fuel is in such demand and is so powerful. The reasons are simple. China alone is adding 30 new nuclear power plants and Business Week calls it the “largest buildout” in the history of energy. There are 440 reactors worldwide today which provide 16 percent of the global energy. Yet what most analysts don’t realize is this — another 284 reactors are used in research and power ships. Demand is growing faster than reason can even comprehend — over 150 million pounds a year. What’s more, the effort to reduce our “carbon footprint” and stop global warming has taken over the globe. Given that uranium is the cleanest, most powerful source of energy in the world, it’s dominance remains unchallenged. In current commodities market, despite high prices, uranium is still cheap. At $150 a pound, it’s unreasonably low. At $300 its bargain. Even at $500 it’s a deal, because uranium produces more power per ounce than any other fuel on the planet. |
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