Wednesday, March 21st, 2007
Uranium Still Booming
By Keith Kohl
Baltimore, MD - After uranium's record price jump this week, it looks like $100 per pound will come sooner than anticipated. And if you haven't established yourself in this bullish trend, you may want to reconsider your position.
Follow the Yellow Brick Road . . .
The spot price for uranium oxide jumped another $6 this week, hitting $91 per pound. The increase was spurred by consistent supply shortfalls. The world's roughly 440 nuclear reactors need well over 150 million pounds of uranium every year.
So how much uranium do we currently produce?
Only about 100 million pounds. And the stockpile of uranium collected from disassembled nuclear weapons is declining fast.
To say the least, uranium is currently in a huge bull market - just look at price soar since 2003:
This means the price of uranium has risen over 810% in four years!
Triple Digit Profits Over The Next 24 Months
Uranium prices are about to go through the roof!
Why will uranium stocks keep climbing, and how can you get in on the soaring uranium bull market? Answer these questions…and learn about two carefully selected uranium mining companies, in Mike Schaefer’s latest research report The New Uranium Bull.
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The burgeoning nuclear industry has contributed to the tight supplies. And the emerging global energy crisis has thrown nuclear energy into the spotlight. While a few alternative energy sources are making headway, future global demand will require energy on a vast scale - something nuclear power can provide.
Consider these facts from the World Nuclear Association Symposium in 2001:
· 1 kg of firewood equals about 1 kWh of electricity
· 1 kg of coal or oil equals roughly 3 or 4 kWh of electricity.
· But 1 kg of natural uranium equals nearly 50,000 kWh of electricity!
Yet the spread of nuclear technology hasn't been the only factor in boosting uranium's price.
Flooding Profits
Natural disasters are never a laughing matter, especially when the devastating impact is widely felt.
But they're much easier to cope with when they give you unprecedented financial gains.
Losing the world's largest undeveloped high-grade uranium project dealt a huge blow to uranium production. Before it flooded, Cameco's Cigar Lake operation was expected to produce about 18 million pounds of uranium annually. The mine would have supplied more than 10% of the world's current uranium demand.
Yet the flood in October makes for a shaky future. There is a possibility that the mine will be lost altogether. Next month, Cameco will release an updated report assessing the situation at Cigar Lake.
Even the best-case scenario would mean postponing production until 2008.
Play with the Big Boys
So it's too late to profit from this bull, right?
Trust me, that couldn't be further from the truth.
The Middle East may know about oil, but when it comes to uranium, the only choices for investment are either Canada or Australia. Together, those two make up roughly 45% of the world's uranium production.
And with such a shortfall in supply, the chances for tiny exploration companies to post tenfold profits are excellent.
One of the best parts of Australia's uranium boom is that China is drooling over the huge Aussie reserves. The land down under is set to supply the Chinese with 2,500 metric tons of uranium every year to fuel their nuclear program. But this isn't even a third of the Chinese demand!
Trust me, as the spot price for uranium approaches the $100 per pound mark, Australia's mining companies will explode. Uranium's growth has spurred the government to reconsider its policy of "no new uranium mines."
But whenever you look at the future of uranium, you'll always end up in Canada, which holds roughly 15% of global uranium reserves and is the world's leading producer.
So the opportunity to cash in is still there for the taking, since some of these tiny companies are virtually unknown. And the truth is that the vast wealth of natural resources in Canada provides smaller companies with the chance of tremendous growth.
Until next time,
Keith Kohl
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