Jeffrey Immelt, the CEO of General Electric, once said green is green. He was referring to how investing in clean energy could be profitable. Well it appears the
nuclear renaissance is making uranium very green. The fever gripping commodity markets of late has now turned to uranium. In June the spot price of uranium hit
$138/lb, a 200% increase on the same period just a year ago. In 2002 the average monthly spot price was just under $10/lb, by 2006 it was close to $50/lb. Are we reaching the end of the bull run? I think not. A couple of years ago, Goldman Sachs forecast oil prices could hit $100/bbl. This was the kind of dramatic headline
newspapers crave for. In the end it peaked at $78/bbl. As for uranium I think the $200/lb threshold is realistic and likely to be hit over the next 18-24 months. So there is still time for potential investors in uranium stock to make a decent return.
