As an investor, you are always looking for a great potential stock to invest in. These days, with the fall of gold and silver as well as oik stocks, it can be difficult to select a new investment. If you have been searching for stocks that you can depend to rise in the future and earn you quite a bit of profit, you should be considering uranium stocks. There are a number of reasons why this is so and you can read about them below.
Restart of Japanese Plant
In 2011, Japan had a terrible earthquake which ransacked its infrastructure. This forced the country to shut down its reactor plant, which depends on uranium. This action brought uranium expansion to a screeching halt, and caused prices to drop down to $28 a pound. As of this August, the plant in Sendai is working once more, which means that the demand for uranium will once more increase, bringing prices up with it. Later in the year, the second reactor in Sendai will be turned on again, and the company plants to have up to 9 reactors working by the end of 2016. This will have massive impact on the uranium market and will sky-rocket prices per pound very soon.
Russia has 29 different reactors. Not all of them are prepared to start running, but they will be soon, which will demand large quantities of uranium every year. Demand on this level will have unpredictable impact on the uranium market, and will surely surpass the expected $70 a pound that many investors are predicting.
This year, China has begin planning on expanding its nuclear plans. It has built nuclear power plants and has therefore entered the uranium market once more. It is planning to build up to 24 reactors in the coming years, and the country has even invested in Kazakhstan’s uranium production, trying to acquire some of its assets. By the end of this year, China expects to have eight reactors up and running.
Utilities in the U.S.
In the coming years, U.S. utilities are expected to be substantial when it comes to uranium needs. This is the most likely and soonest catalyst for the uranium market, since many deals will be completed by the end of 2015.
The recent Australia-India uranium trade agreement is another reason why the uranium market will continue to grow. Uranium companies are sure this will mean that the Indian market will once again play a big role in uranium prices. The country already has 21 reactors and has planned to build 35 or more, which will certainly have a substantial impact on uranium production.
All of these reasons are why getting involved in uranium stock right now is the best bet. Pretty soon, when uranium demand grows, it will be too expensive to begin investing, so if you are planning on doing it, do it now. If you are not sure how to start, a dependable company like Energy Fuels can help you choose the right investment plant for you.