Mailbox: Suggestions for lower risk uranium plays and no compensation from companies
Can you offer your suggestion for a lower-risk uranium play?
– Reader MC
Uranium has historically been a volatile space, with long periods of depressed prices punctuated by dramatic price spikes. If I thought the future would play out as the past has done, my answer would be: there’s no such thing as a low-risk uranium stock!
However, I think this market could play out differently in that I think the main fuel is a realization across the space that prices have to go higher and stay there to incentivize the building of the new mines needed to keep the lights on (feed the supply gap).
That doesn’t mean the spot price won’t shoot up, but I think the drop back will leave the price strong.
With that foundation, I think uranium stocks will provide some of the crazy volatility they have in past bull markets but I also think that investors won’t need to watch closely and exit as soon as things appear to turn down. That kind of attention and trading was needed in past markets or else one’s gains would evaporate. This time, I think close attention and trading might give one the chance to capitalize
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