Why consider uranium as a red hot or white hot investment? Or think of uranium investment for profit at all? Soaring demand for uranium, the worlds principal nuclear fuel-thats why.
About one sixth of the world's electricity is already coming from 440 existing nuclear reactors last year, according to the World Nuclear Association. That doesnt sound a large proportion. But...
By 2050, scientists estimate the world will need about 900 more nuclear power plants just to keep up with growing energy requirements.A new nuclear station can use three times normal uranium requirement.
As a result, demand for uranium has been outstripping supply since 2005. We cant get enough out by uranium mining, so we are reprocessing old Russian nuclear war heads. Many countries are already buying uranium wherever they can.
Japan is holding years of uranium stocks. China in particular- the new economic powerhouse-has the cash and is buys uranium wherever it can, presently buying up as much as it can of of the uranium production within the worlds largest uranium deposits in Australia.
Global Warming
Since 1990, we have had the 11 hottest global temperature years since records began in 1861. There is worldwide concern about further production of greenhouse gases which will send climate change into overdrive. Unfortunately, along with cars, the largest producers of polluting gases are dirty coal burning power stations. And the two biggest industrial giants, the US and China- happen to be the biggest polluters and builders of new stations.
At the moment, most of the West is antinuclear. However... a coal plant will produce up to 2.7 MILLION tonnes of carbon dioxide and ash, but a nuclear power station produces NO greenhouse gases at all. Public opinion is likely to swing towards any energy source that is carbon-neutral- another plus for uranium.
Even a supposed anti nuclear stronghold, the former Soviet Republic of Belarus, (worst hit by the Chernobyl nuclear disaster), is now opting to accelerate its nuclear energy program, as an alternative to expensive Russian natural gas .Use of safer heavy water reactors is also likely to allay public opposition to nuclear power.
Heres another factor in favour of uranium..
Availability
In 2006, global oil demand continued growing and will grow this year. The world used nearly 31 billion barrels for the year, and the most used ever,according to the International Energy Agency. What's more, world demand is set to rise to nearer 31.5 billion barrels.
Worldwide oil and gas reserves are becoming depleted faster and faster, with much of the present supply-unlike uranium- located in politically reliable or volatile regions. Gas. We have coal but its dirty and polluting.
Enter uranium mines fuelling nuclear power as a major alternative energy, the uranium coming from within friendly nations such as Australia, Canada, the US, Mexico and South Africa, and from new uranium exploration and mines. There is also ongoing research into extracting uranium from seawater, providing a potentially limitless of alternative energy.
Then there is cost.
In spite of high start up costs, nuclear power is getting cheaper all the time. Power generated via uranium is better and cheaper than coal, water, wind solar and fuel cells. A recent study showed that the next generation of nuclear power plants should be able to produce electricity at $ 55 per megawatt hour, as against an average rate of $50 per megawatt hour at a coal plant. With further refinements, the nuclear power stations using uranium could produce it at about $44. That makes a uranium electricity than coal, without greenhouse ash and pollutants!
Uranium is therefore underpriced and has not nearly reached its old peak in inflation-adjusted term.
Through 2006, the uranium spot market price continually climbed by 99%, from $36.25 to $72 per pound of uranium oxide,(U3O8). Now it has begun to climb again and at $75 per pound, the uranium price is now more than 10 times the record low of $7 per pound in 2000.
Back in 1978, uranium prices peaked at $43.40 per pound (around $145 per pound in today's dollars. That means uranium prices could nearly DOUBLE and still not surpass its old inflation-adjusted highs. Expect uranium prices to climb by the end of the year as uranium stocks deplete and new contracts with suppliers are negotiated.
Extra tips-Either invest in pure uranium mine companies or more safely,diversified industrial miners with big interests in uranium. Look for a firm with aggressive innovative exploration plans and well stocked with experienced uranium mining engineers and geologists- they are rare now, so many were laid off after the 1980s.
Expect many merger agreements, so firms may consolidate neighbouring uranium mine claims and 'share' uranium mining experts.
Expect demand for uranium to reduce regulation and bans on uranium prospecting and mining.
Check out uranium via uranium mining companies like Continental Precious Minerals, Frontier Group Inc., Mega Uranium, and Alberta Star Development And don't forget established blue chip uranium companies like Cameco.
Discover more of the best and latest secret red hot investments at
www.red-hot-investment.com .
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