The difficulty with uranium is that there is no dispute about the long term trend. The problem is whether the actual results will live up to the hype and expectations.
There are now hundreds of uranium explorers. Few will EVER get a pound of U308 out of the ground. The next three years, we should see an increasing number of real producers. Their actual results will probably disappoint investors, as the expectations are to the moon. So will we make more money by waiting and participating in a long term bull market for uranium or will it be a case of selling before the real results.
I think buying the near term producers is a safe way to participate. I have a few cheapie flyers but most of my money is on real companies with experienced mgmt and a timeline till production. I think they will be very profitable and there will likely continue to be consolidation in this young industry.
Mining is boom and bust. The cost of actually bringing a mine into production is soaring. So the actual survivors that really have a producing mine will be valuable until production catches up to demand. That may be a long time.
Hope we picked the right horses. There are so many in the race! Good luck, Bobwins
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If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
