Editor’s note: We’re doing something different in the Chaikin PowerFeed today…
In short, we’re turning things over to Sean Michael Cummings from our corporate affiliate Stansberry Research. He’s a member of our good friend Brett Eversole’s True Wealth team.
Earlier this week, Sean covered an oft-criticized part of the market for readers of the free DailyWealth e-letter. And importantly… the Power Gauge agrees with his take on this space.
That’s right…
Our system currently holds a “very bullish” rating on one of this industry’s main exchange-traded funds. And as Sean explains, sentiment toward this space is now turning a corner…
Twelve years ago, a three-story wave devastated the Fukushima Daiichi nuclear power plant…
That day, a 9.0 magnitude earthquake struck off the coast. It shut down three of the plant’s reactors. And it forced the plant onto backup generators.
Then, the tsunami came.
The backup cooling system failed. That led to a reactor malfunction.
And it caused the worst nuclear meltdown since Chernobyl.
Steam explosions injured 16 workers. More than 164,000 locals were evacuated from their homes. And the region is still dealing with the aftereffects, with consequences for people’s health and the environment.
The Fukushima disaster led to global backlash against nuclear power. Some countries closed existing plants after the meltdown, while others stopped planning new ones.
But today, that’s changing…
Sentiment toward nuclear power is turning a corner. And as I’ll explain today, that could kick off a major bull run for one left-for-dead nuclear commodity…
Nuclear power could be the key to our “green energy” future.
It’s a carbon-neutral power source. So it can power the grid without polluting the air. And it’s more efficient than fossil fuels.
But you can’t have cheap nuclear power without uranium…
It’s an abundant, dense metal with one important property – its atoms are easy to split apart. Splitting atoms releases massive energy. And nuclear plants can harness this energy for industrial use.
Uranium prices plummeted after the Fukushima disaster. Global governments wanted distance from nuclear power. But today, the price of uranium is soaring. Take a look…
After the big slide that followed the disaster, uranium is now at an 11-year high. And we expect it to keep climbing, for two reasons…
First, consumers are once again embracing the potential of nuclear energy. According to a recent Pew Research Center survey, more than half of Americans support more nuclear power today. And it’s getting more popular as time goes on.
Second, we’ve had a massive undersupply of uranium since the Fukushima disaster.
You see, when uranium’s price was falling, miners couldn’t turn a profit by producing it. So they stopped digging it up. From 2016 to 2020, global uranium production dropped by a quarter.
These twin forces are setting up a huge imbalance between supply and demand.
According to the World Nuclear Association and Reuters, demand for uranium in nuclear reactors is expected to climb 28% by 2030. And it’s expected to nearly double by 2040.
Yet supply is still scarce after a decade of low production.
That means the 11-year high in uranium prices is likely just the beginning of this asset’s bull run. It could take months – or even years – for the supply squeeze to play out.
Uranium has room to soar in the long term. So if you want to add the metal to your portfolio today, you could consider the Sprott Physical Uranium Trust Fund (SRUUF).
This exchange-traded fund is dedicated to holding just one asset – physical uranium. It provides access to this market through a simple investment in your brokerage account.
Like the metal itself, SRUUF is breaking out to new highs today. But don’t think you’ve missed the rally.
The nuclear supply squeeze will take a long time to unwind. And until it resolves, expect uranium to keep marching higher.
Good investing,
Sean Michael Cummings
