Ryan Stancil,
Editor
May 9, 2022
Now is the time to buy uranium.
It seems like a crazy idea to buy anything in this market. The major indexes are down for the year so far. Inflation still looms, war still rages in Ukraine, and uncertainty still reigns.
But environments like this are ideal for buying, waiting, and benefiting when the time comes.
And a unique set of conditions makes that especially true for the uranium sector.
There are long-standing reasons, like the world’s desire to build more nuclear plants to get away from fossil fuels. And as we’ve said here many times, the ongoing geopolitical crisis in Ukraine is another factor.
At the end of last month, Germany signaled that it was willing to carry out a wholesale sanction of uranium imports from Russia as a result of Putin’s war. And as goes Germany, so goes the rest of the European Union.
That means even higher prices for uranium producers as demand grows and supply dwindles.
And those higher prices are causing more producers to wake up.
Here in the US, miners are looking to restart operations at long-shuttered mines now that it makes financial sense to do so. As of the time I’m writing this, the price of a pound of uranium is about $54. It needs to be in the mid-$60 range to be profitable.
Just a few weeks ago, that price was in the low-$60s before it pulled back to its current level, so investors have gotten a recent taste of prices climbing in a short amount of time.
There are several issues any miner has to work through before they can begin extracting anything. Regulatory hurdles and environmental concerns are at the forefront. There is also a question of contracts that guarantee a rate of return for the companies that would be doing the mining.
Still, these are all issues that can be worked out with time. The rising price environment for this element is creating the incentive producers will need to bring idle mines back online and get supply to market.
For investors, this may be one of the biggest stories of the decade. Those able to deploy capital into uranium are faced with an opportunity that could mean massive gains after the next few quarters.
What we’re seeing here is a truly once-in-a-generation thing. To be able to see outsized profits from only one stock is something most investors only dream of. Now the dream is real, and the profits are there for the taking.
Companies in the sector are starting to make their moves. When the market really takes off, their share values are set to multiply many times over.
By putting your money in the right place, your wealth can multiply right along with the sector.
There’s one play in particular that will help you make your fortune. This uranium cycle is just getting started, but you’ll want to get in right away.
The cheaper you buy shares now, the bigger the payout will be when the uranium market leaves all other sectors in the dust.
Ryan Stancil
Editor, Daily Profit Cycle