Topic: How To Invest

Hi Pat: I know you recommend Cameco in the uranium space, but what about Denison Mines for exposure to potentially rising uranium prices?

Article Excerpt

Uranium prices reached an all-time high of $136 U.S. a pound in 2007 on fears of shortages. However, those shortages never materialized. Uranium prices then steadily declined to a low of $42 a pound in 2009, then rebounded to $73 in January 2011. However, the March 2011 Japanese earthquake and tsunami, which damaged the Fukushima nuclear plant, caused uranium prices to fall steadily to about $49 a pound in August 2011. Investors worried that the accident would hurt the long-term prospects for nuclear power and weaken demand for uranium fuel. Uranium rose to $52 in September 2011, and then moved sideways until July 2012, when it began to move down. It now trades at $41 a pound. Long-term nuclear power demand appears intact, despite the disaster. Japan, Germany and France aim to cut their reliance on nuclear power, but China, India and other countries are continuing with their nuclear-power expansions. There are 65 nuclear reactors now under construction worldwide, and a further…