Uranium remains one of the most volatile commodities in the world. Though the mining industry has seen better days, some experts believe there is still enough room for the commodity to run and make those who hold uranium stock attractive investments.
John Cash, an analyst at WN Financial Solutions, believes that the market for uranium has room to grow, as demand has increased significantly in recent years. According to Cash, most of the growth has come from developing countries. Many nations, such as China and India, are turning to nuclear power as an alternative source of energy.
The uranium market is still highly susceptible to geopolitical events: prices could take a hit if negative news regarding the nuclear industry comes out. Cash believes that investors should expect substantial volatility in the uranium market in the short term.
That said, Cash believes there are certain opportunities for those looking to invest in uranium. He suggests that investors pay attention to development in the industry, such as the progress being made on nuclear power plants.
Furthermore, investors should keep a close eye on the major uranium mining companies, Kinross, Herriman, and UrEnergy. Cash suggests that investors focus on the market performance of these companies, as well as developments in the uranium market as a whole, before investing.
Overall, Cash believes that the uranium market has room to grow and has the potential to yield substantial returns for savvy investors. However, he also believes that given the volatility of the uranium market, investors should focus on long-term strategies and monitor the industry carefully.
