We reveal three words in trading updates which could point to problems ahead
Trading at $30 per pound Uranium has staged a 7% rally since May. Bullish investors can play a continued recovery through Spanish miner Berkeley Resources (BKY:AIM) at 17.8p or get more diversified exposure via fund Geiger Counter (GCL) at 25p, which invests in uranium miners.
Uranium peaked at $136 per pound in June 2007 and the market fundamentals were shaken up by the Japanese nuclear disaster four years ago which caused global nuclear power developments to be shelved or delayed. Japan is now expected to restart at least 30 reactors over the next few years; China and Russia continue to build new reactors; so too do India, Korea and the US.
Although there's lots of naturally-occurring uranium in the world, there could be a supply squeeze due to limited investment in mines in recent years so countries may once again clamber to secure future supplies, pushing up prices in uranium miners.

The uranium recovery story is very high-risk and timing unpredictable but it is increasingly becoming an interesting trend. Berkeley and Geiger shares offer high leverage to the uranium price.