Uranium, a heavy metal mainly used as fuel in nuclear power plants and nuclear weapons, is one of the mining stocks that has gained major attention recently. The global need for clean energy and fuel that pose less environmental threat has resuscitated this sector. Another factor in this revival is energy security, as the UMiS and EU have realized how dependent they are on Russia and other countries for fuel. No wonder the uranium spot price hit a high of US$60/pound in April, the highest since the Fukushima disaster of 2011.

With uranium gaining more momentum, it looks as if this radioactive trend will not stop. However, just this last week, uranium price plummeted, and with it, its stock. Major uranium powerhouses reported loss, with Denison Mines down by 7.6%, Energy Fuels down by 9.8%, and Uranium Energy down by 9.9%. With the spot price of uranium now at $48.75 per pound, there are concerns that uranium stock might not hit the $60 height again.

Should this fall in price be a source of panic for potential investors and key players? According to Ocean Wall, the fall in the stock price of uranium is not a problem as utilities keep buying uranium on long-term supply contracts at prices between $52 to $61 per pound. This led to a temporary rise in the stock price before the Wednesday decline. This uncertainty about the supply and price of uranium is predicted to further drive the price of the stock as demand is high.

With major uranium players around the world swinging back into action, it seems the uranium resurgence is not yet done. Old projects are being resurrected while kick-starting new ones. Around 450 nuclear reactors are presently active globally, and 55 are under construction. Deep Yellow (ASX:DYL), a major uranium mining company, is merging with Vimy Resources (ASX:VMY). Paladin Energy (ASX:PDN) recently raised $200 million from investors to support the restart of the Langer-Heinrich uranium mine in Namibia. A host of other uranium powerhouses have also pulled strings to ensure that uranium mining becomes the next gold mine.

Now might be the perfect time if you have it in mind to invest in uranium stock.

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