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center_img Recommended Link — • The price of uranium can’t go much lower… It’s already nearly 90% below its high. More importantly, it’s below the industry cost of production. This means that the average uranium miner is losing money on every pound of uranium it produces. Situations like this don’t last long. But don’t take my word for it. Take it from Tim Gitzel, CEO of uranium giant Cameco. He says today’s uranium prices are “neither rational nor sustainable.” If they don’t rise soon, Gitzel says the supply of uranium will become much tighter…and that could send uranium prices soaring. That supply crunch could happen sooner than most people think.• The world’s biggest uranium producers are already slashing production… Take Kazakhstan, which produces 40% of the world’s uranium. Earlier this year, its giant state-owned uranium miner Kazatomprom announced plans to cut uranium output by 10% in 2017. U.S. uranium producers are also scaling back output. Just look at the chart below. It measures the number of new uranium mines in the U.S. You can see that U.S. companies have severely cut back on exploration. If this continues, global uranium supply is going to get very tight. But that’s not all that will lift uranium prices…• Demand for uranium is rising… Right now, over 60 nuclear reactors are under construction around the world. Most of those will be up and running within the next three years. Another 160 reactors are in the planning stage, and over 300 additional reactors have been proposed. These new reactors are going to burn a lot of uranium. In fact, research firm Morningstar expects global uranium demand to rise 40% by 2025. That’s a huge surge in demand for a commodity, especially one that’s seen essentially zero demand growth over the last 10 years. The combination of falling supply and rising demand is why analysts expect the price of uranium to rise. Some experts even think it could top $40 a pound by 2020. That’s double the current price.• The market is starting to “price in” higher uranium… Just look at the chart below. It shows the performance of the Global X Uranium ETF (URA). This fund tracks 22 uranium stocks. You can see that URA bottomed last November. Over the next few months, it nearly doubled in value. Then, uranium stocks crashed. URA fell 35% between February and June. This sharp pullback shook out a lot of weak hands…but not us. We stayed bullish on uranium stocks for a couple reasons: Uranium prices are irrationally cheap, and… So, if you haven’t already, consider buying uranium stocks today. They look like they’re setting up for the next leg in what could be a bull market for the ages. Just understand that uranium stocks are highly speculative. So only bet with money you can afford to lose.Regards,Justin Spittler Vancouver, B.C. July 18, 2017 P.S. Casey Research has been all over the uranium boom this past year. E.B. Tucker, editor of The Casey Report, just recommended a company he says will benefit most from the coming uranium boom. It’s a profitable, world-class company… And it even pays a dividend. Best of all, E.B. still thinks it’s a screaming buy. You can learn all about this opportunity by signing up for The Casey Report. Learn more here.last_img

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