Generally speaking, I am looking at uranium as a macro investment based on the supply and demand dynamics of the market. At a high level, uranium needs to be in the $50+ (some say $60+) range in order to cover the cost of production. Right now the spot price is hovering around $30.
That being said, uranium is outperforming. So what then is driving this run? Are we likely to see a move in spot soon?
Personally, I think that the equities are ahead of themselves a little bit and that we could be seeing a pull back soon. I hope not. Still, the spot price is a little bit of a question mark for me because I have seen a number of interviews saying that we are very close for a move in the uranium price. This has led me to the view that I should hold my positions and slowly build until the spot price starts to move. It’s a risk, but my hypothesis is that the real move will far outpace where we are today.
Ultimately, uranium is about climate change more than.anything and so I am glad we are ahead of schedule. Nuclear is the only way to achieve the carbon goals.
I will be watching closely in the next few weeks for any movement in the uranium price. Should the spot rise as many of us expect, uranium stock prices will soar.
As always. I am interested in how others perceive the current landscape. Any and all feedback is appreciated.
Submitted March 17, 2021 at 11:53PM by BooOnClay https://ift.tt/3cKCEK1
