Welcome To the U308 Corp HUB On AGORACOM

Edit this title from the Fast Facts Section

Free
Message: Uranium is already one-year past a cyclical low
Reply New Message
Back To Forum List View
Uranium is already one-year past a cyclical low

With commodities in the headlines because of the decline in prices to multi-year lows - copper at its lowest price in six years, for example, commodities tend to be lumped into one basket with the assumption that they are all performing badly. This is generally true with the exception of uranium that actually shows very little correlation with the other commodities. Uranium declined to its lowest price in a decade in June 2014, and since then, has gradually risen about 30%. Uranium is already 15 months past its cyclical low-point.
Despite uranium trading higher, uranium stocks have lagged. For example, Cameco, the bellwether of the industry, is currently trading at lows last seen in 2004, and briefly touched in 2008.
Cameco's share price has historically correlated well with the price of uranium and, going forward, it would not be unreasonable to expect a resumption of this relationship. Stock prices of companies in the uranium sector tend to follow Cameco's lead and so uranium equities are likely to snap back to broadly correlate with trends set by the uranium price.
Comparison of Gold, Copper and Uranium prices over the last decade
Graphic is courtesy of, and derived from, InfoMine.

TSX: UWE
OTCQX: UWEFF
SSE: UWECL
www.u3o8corp.com
Reply New Message
Back To Forum List View
Share
Share
New Message
Please login to post a reply