Will uranium ever be the new gold? Maybe… but not quite yet. Despite its recent plunge to below $40 per pound, which is the first time it has dipped that low since 2006, uranium inventories remain plentiful in the US and Europe. But that could soon change.
The new low looks like a low-risk entry point, as the long-term outlook for uranium is positive, supported by a renewed pro-nuclear movement on the near-term horizon. In Japan, concerns about air pollution and rising costs have quelled the nuclear opposition. Recently a pro-nuclear government was elected, so Japan's 48 inactive reactors should come back online sooner than expected.