Scott Wright, with Zeal Intelligence LLC, says uranium has been getting exposure on many different fronts recently. In this article, which appears on Goldseek.com, Wright points out that as global energy concerns have moved to the forefront of everybody’s minds, a big drive toward alternate energy is underway. Nuclear energy, he says, is becoming a very acceptable alternative to the fossil fuels that power the globe today and uranium is the commodity poised to shoulder this drive.
. . . Nuclear energy is the largest and most talked about form of alternate energy as more than 16% of the world’s electricity is currently generated from it. Last summer I penned an essay discussing the current powerful bull market in uranium and in it I outlined various fundamentals that have lead to the sharp rise in price of the mineral commonly referred to as “yellowcake”.
Now there are many different sectors within today’s secular bull market in commodities that provide investors with opportunities to multiply their capital. The metals and energy markets have commanded the lion’s share of attention thus far. Precious metals and base metals have been on a tear in recent years greatly rewarding prudent speculators and investors. And with oil and natural gas leading the way, the energy markets have been very rewarding as well.
Uranium, on the other hand, falls somewhere in between metals and energy in its fundamental characteristics, but its performance has been in a league of its own. As seen in the chart below uranium has been a hot commodity in recent years. Even since I last wrote about it only 10 months ago it has powered higher by 43%.
As recently as 2000 uranium was trading as low as $7 per pound while today it trades at $41.50, a massive 493% gain in just six short years. This gain dwarfs those of most every other metal and energy commodity, and I believe there is still much more room to run.
The price for uranium today is the highest it’s been in 27 years. And with its current trend it may only be a matter of months before it matches its all-time high of just over $43 per pound. But until it started to take off in 2003, uranium spent a couple decades hovering around the $10 range. There are several reasons why uranium has finally awoken from its dormant state.
Just like all commodities taking part in this soaring bull market, fundamentals are ultimately the driving force behind each secular trend. And like most other hard commodities, uranium is in the midst of a massive economic imbalance as mined supply is not even close to keeping up with soaring demand . . . .
. . . Nuclear energy is the largest and most talked about form of alternate energy as more than 16% of the world’s electricity is currently generated from it. Last summer I penned an essay discussing the current powerful bull market in uranium and in it I outlined various fundamentals that have lead to the sharp rise in price of the mineral commonly referred to as “yellowcake”.
Now there are many different sectors within today’s secular bull market in commodities that provide investors with opportunities to multiply their capital. The metals and energy markets have commanded the lion’s share of attention thus far. Precious metals and base metals have been on a tear in recent years greatly rewarding prudent speculators and investors. And with oil and natural gas leading the way, the energy markets have been very rewarding as well.
Uranium, on the other hand, falls somewhere in between metals and energy in its fundamental characteristics, but its performance has been in a league of its own. As seen in the chart below uranium has been a hot commodity in recent years. Even since I last wrote about it only 10 months ago it has powered higher by 43%.
As recently as 2000 uranium was trading as low as $7 per pound while today it trades at $41.50, a massive 493% gain in just six short years. This gain dwarfs those of most every other metal and energy commodity, and I believe there is still much more room to run.
The price for uranium today is the highest it’s been in 27 years. And with its current trend it may only be a matter of months before it matches its all-time high of just over $43 per pound. But until it started to take off in 2003, uranium spent a couple decades hovering around the $10 range. There are several reasons why uranium has finally awoken from its dormant state.
Just like all commodities taking part in this soaring bull market, fundamentals are ultimately the driving force behind each secular trend. And like most other hard commodities, uranium is in the midst of a massive economic imbalance as mined supply is not even close to keeping up with soaring demand . . . .
