John Cash: Uranium Ready to Explode–Prepare for the Wild Ride!

John Cash, a long-time equity analyst with Credit Suisse recently suggested that uranium has a lot of room to run – but also expects tremendous volatility. His research focuses on the uranium sector and its drivers, and his bullish outlook is based on changes in the industry structure which have been a long time coming. Cash is confident that an increase in demand for nuclear power is inevitable. He suggests that a number of factors, including government policies and environmental regulations, will lead to higher demand for nuclear technology. This will likely see demand for uranium increase, and Cash believes that it is likely to be high for the foreseeable future. The analyst also points to a strong growth in supply, which has been constantly rising since the early 2000s. Despite numerous difficulties and several attempts to slow the growth, he expects to see an increase in production as producers take advantage of higher prices. What Cash is warning investors about, however, is the volatility that is likely to accompany an increase in uranium prices. In his opinion, uranium prices are particularly sensitive to geopolitical events, responses to technological advances, and other unforeseen developments. He has experience of the recent past, when supply increased at the same time that demand dropped due to the Fukushima disaster, leading to a sharp decline in prices. The message from Cash is that uranium may have room to rally, but investors must also expect significant volatility. He is aware that uranium is a potentially dangerous asset to invest in, but is optimistic that the long-term prospects are good.