Why Uranium Could Go To $200 And Beyond

As I noted in my previous article entitled, "6 Ideas for Where the Next Bubble Will Be," I believe uranium prices are ripe to go much higher. There is an imminent supply demand imbalance due to the coming end of the Megatons to Megawatts program, as well as an abundance of new nuclear reactors set to come on board over the next 15 years, that I think will drive this market.

So the question: How high can uranium prices go? In that regard, I think it helps to first observe historical prices. See the chart below.

I think a re-test of previous all-time highs - more than double current uranium prices - is likely. The fundamental factors (i.e. supply/demand imbalance) are even stronger now, and central bank monetary policy is even more inflationary which will likely make markets as a whole more volatile and more prone to bubbles. Because I expect uranium prices to more double, I expect the same - even more so - for most uranium mining companies. Purchasing Cameco (CCJ), the largest North American uranium miner, or the uranium ETF (URA) are easy ways to play this. (more)