John Cash is very famous in the uranium industry. He has been on the scene for many years and has a wealth of knowledge to share with the community. Cash recently made a statement that the current uranium market still has room to run but that investors should be prepared for some tremendous volatility.
Uranium spot prices have not taken off as expected after the prices were decimated in the aftermath of the Fukushima disaster. Currently the spot price is less than $30/lb, substantially below an unsustainable level for producers. A price of around $70/lb is much more attractive for producers. Cash sees this as an opportunity for the market to adjust, leading to eventual price stability.
Cash also recognizes that investors should expect considerable volatility, even with a potential recovery. There is still a lot of uncertainty surrounding production supplies, future demand, and potential pricing trends. According to Cash, the industry is at a critical juncture and investors should prepare themselves for the possibility of major price swings.
It should go without saying, but investors should expect uranium prices to fluctuate. This is due to the potential of production supply changes, especially in times of political instability, as well as other potential externalities. It is important to note that Cash believes in the potential of uranium prices recovering in the future, but it will be accompanied with a considerable amount of volatility.
John Cash’s opinion is highly influential in the uranium market, and should be given close consideration when deciding whether to make an investment. He has good experience in the industry and is an expert in the field. While there is risk in any kind of market, Cash seems to suggest that there is still potential for uranium prices to show an uptrend in the future. What remains to be seen, however, is how much volatility will come with it.