![]() “It’s a ridiculous price,” Bambrough confided. How high could spot uranium prices run? Kevin Bambrough made a hypothetical case for uranium trading north of $500. Canadian Augen Capital Corp’s managing director David Mason speculated, “$100 (US) a pound is within reason within the next year or two.” Sydney-based Resource Capital Research is half as generous, forecasting $50/pound by 2007, explaining another 40 percent jump in spot uranium prices will be “driven by end users in the power generation market which is urgently trying to secure supply into the future.” Toronto-based Sprott Asset Management research analyst, Kevin Bambrough, told STOCKINTERVIEW.COM, “There is a good possibility of a supply crunch that could drive uranium prices to unbelievable highs.” Various analysts predict price targets for spot uranium, in the near-term, above $40. Uranium Prices May Reach “Unbelievable Highs” During this launch phase, investors have taken notice, chasing up the stock prices of many uranium producers and exploration companies. Over the next decade, as demand continues to outstrip supply, analysts are predicting utilities will snap up known uranium inventories sending spot uranium prices to record highs. Uranium is now in shorter available supply for civilian energy use than ever before. ![]() Herein lays the crisis: the world has been living off rapidly dwindling inventories since the last uranium up cycle. In a nutshell, global utilities are going to need uranium to help feed the increasing number of nuclear power plants proposed over the next twenty years. Dozens of lesser developed countries, from Turkey and Indonesia to Vietnam and Venezuela, have announced their eagerness to pursue a civilian nuclear policy to benefit power needs for their burgeoning middle classes. Both plan aggressive nuclear energy expansion programs. The world’s most populated countries, China and India, are in the process of creating the largest energy-consuming class in the history of earth. The WNA forecasts a 40-percent jump in worldwide electricity demand over the next five years. The World Nuclear Association (WNA) believes nuclear energy could reduce the fossil fuel burden of generating the new demand for electricity. Nearly 2 billion people across the planet have no electricity. The nuclear story pitch is simple: How do you accommodate a massive rush for electrical power demand while faced with the dire threat of carbon dioxide emissions and its direct impact on global warming? The growing consensus is that fission-based nuclear power may become the significant stop-gap energy alternative for this century and possibly until reliable technologies can effectively provide the means for renewable-sourced energy. Just as investors caught the curve of a new paradigm in communications and commerce with Internet stocks, many early birds have already begun investing in the nuclear energy story. Still early in the current bullish uranium cycle, investors are scoring triple-digit returns on what some are calling a ‘renaissance in nuclear energy.’ energy crisis for highly sought uranium has been developing for more than twenty years. ![]() ![]() While the much-hyped and fleeting Y2K crisis never materialized, the U.S. Legendary stock picker James Dines recently compared uranium stocks to the high-flying net stocks of the halcyon days of the Internet expansion era. ![]()
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