Profit From the New Uranium Boom

Uranium Boom

If you as an investor expected anything big from the G20 summit in Rome or the climate summit in Glasgow, you’re probably disappointed. It’s not just that a lot was said at the summits and little was decided. Much worse is the fact that China, the largest CO2 emitter on earth, did not accept any commitments and thus the efforts of the rest of the world are probably in vain.

CO2 Reduction? China is Not Playing Along

Beijing, which alone is responsible for one third of global CO2 emissions, vowed to become CO2-neutral by 2060. And if that doesn’t work out, it’s okay with them.

China, by the way, is currently building the most new coal-fired power plants in the world. For every coal-fired power plant shut down in Germany, 10 new ones are being built there.

The West will probably have to consider more forceful ways of getting China on board in the future – perhaps even with sanctions. 

Until then, of course, the West will not give up its CO2 reduction strategy. And since most countries have recognized that this will not work without nuclear power, new nuclear power plants are being built or are being planned all over the world.

Uranium Boom: Demand Goes Through the Roof

It’s all the more certain: Uranium is probably the safest megatrend of the coming 20 years. Its prices will go through the ceiling due to the enormous demand.

But the market is already strained. This year, uranium demand will be around 191 million pounds. The expected production, however, is only about 128 million pounds. So even the current demand cannot be met.

This demand will increase dramatically. By 2028, there will be a shortfall of an estimated 372 million pounds of uranium. This corresponds to a production gap of 3.5 years, which doesn’t include the growing demand from investors.

How to Profit From Uranium Prices Skyrocketing

For this reason, the price of uranium has already surged. From under $20/pound at the end of 2016, it has more than doubled to date (currently $47/pound). But there is still a lot of room for growth.

In June 2007 at the peak of the last uranium boom, prices were at $140. To reach this old level again, the price would have to almost triple. But today the supply is much lower and the demand much higher than back then. That means much higher prices are possible than $140/pound.

This means only one thing: With the new uranium boom, investors can certainly make a fortune.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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