With the ever-growing world population,
there is a mounting influence on the global environment as well. Over the
years, coal has become a useful source of energy. But due to the above
scenario, a majority of countries like China that utilize coal for energy
are shifting their attention elsewhere. There are reports of the country aiming
to bolster the capability of uranium investing through the coming decade. This
indicates that there could be a high potential for this metal and the
uranium-investor could be bullish on the stock market. He would do well to
invest in uranium stocks rather than in the commodity itself, as processing of the
latter is quite complicated.
There are many nations of
the world that use energy sources for their industries and they look towards
coal; the conventional fossil fuel for their needs. But the main hitch here is
the high-pollution factor that is affecting these countries. It also is a known
fact that there is a better option for coal as far as effectiveness is
concerned: Nuclear Energy! For a period over the next ten years or so, China and India are going to require
substantial quantities of energy; which they can acquire through nuclear power
and in due course, through uranium investing. Such up-and-coming markets are
aspiring to enhance their nuclear facilities. This in turn, will give a boost
to uranium trading and investments in these stocks will most likely see a growing
trend.
There are a few junior
mining uranium investing companies that show the promise of doing well in the
exploration and development sectors. A fine example of such a firm is Ur-Energy
Inc. (AMEX/URG, TSX/URE). The schedule for project development in junior mining
stocks is a risky affair. This uranium investing firm presently is involved in
completing the formalities of necessary permits for bringing into production
the Lost Creek mine. It also aims to construct a processing facility that has
the capacity of handling two million pounds per annum.
As per the recent
announcement of Ur-Energy, the Bureau of Land Management has given the Final
Environmental Impact Statement of its recommendation to the Drying Yellowcake
On-Site Alternative. As the aforementioned statement will go into the record of
decision and soon be released, this is an illustration of how mining stock
firms have to face risks and how there is need for suitable environment
appraisals and approvals, with strict adherence to all the government
regulations. In addition, review of the logistics and timetable for the
construction of the project too will soon follow and Ur-Energy should need
about nine months in which it will have to complete these proceedings after
which the first half of next year could bring its production sector to the
commencement stage.
The last year has seen high
volatility in mining stocks in general and so investments in junior uranium
mining stocks can also be associated with risk. At the same time, the potential
returns are high. It is advisable to put uranium investing through mining
stocks on one’s investment portfolio as one that entails a long term profit. The
reason is that there is a considerable time lag between its stages of
exploration, development and production.
Ur-Energy has recently
breached and held its 200-day moving average and the RSI has become a little
overbought. So a consolidation could be most likely for an upside movement. If
everything goes as per the schedule, this stock holds the promise for
exhibiting upside moves in the coming year. Likewise, any problems in the
process will hamper is progress and could result in a likely sell-off.
As with any investments, it
would be better to be patient and if one is interested in uranium investments,
mining stocks should feature on their radar screens as they are becoming more
and more useful in the nuclear power sector which shows all the signs of having
a good potential in the future.
For more information, visit www.pennystockdetectives.com
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