Uranium prices have pushed past the $100 per pound mark, making it one of the best performing commodities once again. Analysts are suspecting that uranium is en route to historical highs. This gives investors more reason to consider exposure to its expansive growth prospects.
Basic economic principles suggest that with higher demand, there needs to be increased supply to balance the market. Unfortunately, supply constraints in tandem with increased demand is helping to push uranium to new historical highs.
Given the latest price push, more companies are restarting uranium mining projects. As reported by Investing.com, Denison Mines (DNN) is looking to restart the McClean Lake mine in Canada, and other mining companies could follow suit given the profitability potential.
“As demand for nuclear fuel keeps growing, analysts are scrambling to set price predictions, speculating whether it can surpass 2007 highs,” the Investing.com report confirmed. Again, supply remains a prime concern. Even if more miners start new projects or restart previous ones, it will take time in order for supply to catch demand.