Uranium stocks have been on an incredible tear for the last few months as demand for uranium looks to go up over the next few years. But is the demand going to be long lasting, pushing these stocks even higher? Here are a few things that may drive the sector higher over the next few years:
- Cold War stockpiles are beginning to run out, with the Russian supply agreement to the U.S. ending in 2013.
- Russia is building 18 new nuclear plants.
- China has plans for 45 reactors to feed its ever-growing power needs.
One-third of current uranium supply comes from secondary sources like military weapons that will be exhausted in five to 10 years, according to the Organization for Economic Co-operation and Development. So with existing demand and projects in South Korea, Japan and other countries around the world the dynamics are ripe for uranium miners to profit from the trend.
And that's exactly what investors are hoping for from Uranerz Energy
If you want a more diverse way to play the uranium boom Global X Uranium ETF
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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