Uranium: The Precious Element

The ever-increasing oil and gas prices have sparked a worldwide revival of interest in nuclear power... which is in turn pushing uranium prices and stocks of related compnaies through the roof. Already, raw uranium prices have jumped nearly 500%. But that’s nothing compared to the gains uranium mining companies are enjoying. This list is worth taking a serious look:

• Cameco Corp. (CCJ) : up 1,100% since 2002
• Frontier Development Group (FRG.TO) : up 1,400% since 2004
• International Uranium (IUC.TO) : up 2,600% since 2003
• Strathmore Minerals (STM.V) : up 2,850% since 2003
• UEX Corp. (UEX.TO) : up 4,900% since 2003
• Western Prospector Group (WNP.V) : up 6,100% since 2003

The demand for uranium is growing rapidly. As far as we know, 35 nuclear power reactors are in the planning stages worldwide and proposals for another 35 are on the table of several governments:

• India - 9 under construction, 24 proposed
• South Korea - 8 under construction
• China - 4 under construction, 6 planned, 20 more proposed
• Japan - 3 under construction, 12 planned

It seems the bus has not gone too far away. Should we run to catch it? Well... as always, if you have some spare money which you can put without much of an anxiety, Uranium stocks might be just right for you.