Why Uranium’s Move Higher Is Just The Start


Back in April, I explained there were two types of speculators in the uranium space.

  • Those waiting for the spot price to go up before they commit capital...

  • And those who were up triple digits this year as the catalysts continue to stack up while the spot price remains relatively flat. 

I also explained to you why the move higher was just the start for both the better names in the space and for the spot price.

I told you that Sprott Asset Management taking over management of Uranium Participation to create the Sprott Physical Uranium Trust Fund (TSX: U.U)(OTC: SRUUF) would prove extremely consequential for the space.

Fast forward four months later to today... The uranium spot price is at a 52-week high of $34 and Sprott’s trust now has over 20.3 million pounds of the yellow stuff on its balance sheet with a net asset value of $731 million.

As I explained back in April, the fun is just starting and before the year is out I expect every uranium company in the portfolio to reach new 52-week highs.

Same for the uranium spot price.

Sprott will continue to buy in the market and sooner or later the utilities will step back in and start locking on new agreements at much higher prices.

For most that’ll be the sign that it’s time to get into the uranium space. You’ll see segments on CNBC about the resurgence of uranium as a way to diversify your commodity portfolio.

They’ll tell you how the price has to go higher because the utilities don’t mind paying 50-60-70% more than the current spot price to secure long-term stable supplies of uranium because the price of uranium is such a small input in the bigger scheme of things.

By then the spot price will be headed to $60-$70/lb and eventually triple digits.

It’ll be obvious then.

We don’t do things that way around here.

We like to be early, get ahead of trends and position robustly for the turn.

If you haven’t already done so you need to make sure you are positioned with quality uranium names.

I’d get that done sooner rather than later. 

Let's get it!

Gerardo Del Real

Gerardo Del Real
Editor, Resource Stock Digest

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Resource Stock Digest, Junior Resource MonthlyJunior Resource Trader and Junior Resource Insider. For more about Gerardo, check out his editor page.

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