Gold News

The Other Yellow Metal

Even with gold prices falling so hard, uranium still looks cheap compared...

OVER the past month, writes Marin Katusa, chief energy investment strategist at Casey Research, gold prices have seen a considerable decrease, dropping almost 15% since the beginning of May.

If this trend continues, gold will have its first losing year since 2000. This has led many investors, from the housewives of China to the bankers on Wall Street, looking for a bargain in gold prices.

However, what they don't realize is that there is already a bargain available – in uranium. Despite being the source of 20% of electricity in the United States and 35% in the EU, its price remains at multiyear lows.

Yes, gold has dropped a lot in the past month, but an ounce of gold can still buy almost 35 pounds of uranium at today's prices – that's much more than the historical average of 22 pounds. In fact, back in 2007, an ounce of gold would only net you about five pounds of uranium.

What does this mean? If you consider paper fiat money to be worthless and gold as real money, then the fact that you can buy more of uranium with gold means that uranium is cheap.

Right now, we are clearly in the territory of "uranium is cheap relative to gold prices".

Since these types of ratios have a way of going back to their historical averages, this means that in a gold bull environment, uranium should be set to increase even more.

Still not convinced about uranium? Watch Casey Research's free online video event, The Myth of American Energy Independence, to learn more about the future of nuclear power, energy security in the US, and the uranium sector as a whole.

Some of the most knowledgeable experts in the field, including former US Energy Secretary Spencer Abraham and emeritus chair of the UK Atomic Energy Authority Barbara Thomas Judge, will provide their insights and forecasts for the future of uranium.

Doug Casey is a world-renowned investor and author, whose book Crisis Investing was #1 on the New York Times bestseller list for 29 consecutive weeks, a record at the time.

He has been a featured guest on hundreds of radio and TV shows, including David Letterman, Merv Griffin, Charlie Rose, Phil Donahue, Regis Philbin, NBC News, and CNN; and has been the topic of numerous features in periodicals such as Time, Forbes, People and the Washington Post.

His firm, Casey Research, LLC., publishes a variety of newsletters and web sites with a combined weekly audience in excess of 200,000, largely high net worth investors with an interest in resource development and international real estate.

See full archive of Doug Casey articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

 

Market Fundamentals