Krauth says uranium is an excellent commodity to invest in. Plus, he thinks uranium investors could see skyrocketing returns of over 1,000%. Here's what's fueling Krauth's bullish uranium prediction, plus the best way to invest in uranium…Uranium slid into a bear market in 2011, when a major earthquake and tsunami caused the Fukushima Daiichi nuclear power plant to melt down. The radiation caused nearly every country to back away from nuclear power. But that overreaction to nuclear power was temporary, and it did not last. That makes right now the ideal time to enter the uranium market.
Nuclear power at the consumer end is relatively inexpensive and reliable. Even Japan has continued to invest in nuclear power, with six operating nuclear reactors and three more slated to start again in June. China is also a gigantic consumer of energy, most of which derives from coal. But coal is polluting the air significantly in China. The Chinese government is actively moving to new sources to reduce its coal consumption and its air pollution. Worldwide, the combined needs of affordable electric power and the need to cut environmental pollutants have made nuclear power one of the ascendant sources of energy.
Uranium only makes up 2% to 3% of a power plant's operating costs. That means the price of uranium can rise substantially without making nuclear power prohibitively expensive. While uranium has strong, global demand as an essential component to clean energy, the real money is being made in the production of uranium… Nuclear power plants currently produce about 20% of the United States' power. They're clean and more reliable than wind or solar, which need the right conditions to be completely reliable. The United States is also the biggest uranium consumer globally, using about 50 million pounds every year. Yet just 2.7 million pounds are produced annually in the United States. The United States has to import the rest, and that means dealing with unsavory and sometimes hostile countries. Nearly half of the United States' uranium imports come from Russia and Kazakhstan, which make up 14% and 24% of imports, respectively. But a new regulation is going to make it easier to produce uranium in the United States, and that's going to make it easier for you to profit…
In December, the new administration issued an executive order requiring a strategy to make sure the United States had reliable and secure ways of getting "critical minerals." Thirty-five of these were named after a U.S. Geological Survey review. And uranium is one of them. That's very good news for people wanting to invest in uranium. On top of that, U.S.-based uranium producers petitioned the government to stop cheap uranium imports. They argued that Kazakhstan, Russia, and Uzbekistan, which together supply more than 40% of the uranium the United States uses, hurt the uranium market in the U.S. and keep prices artificially below the price they could be. That's creating a perfect storm for uranium, in which the government designates it a critical resource for national security and needs to help boost the price to make it worthwhile for U.S. companies to produce.
And you can turn that perfect storm into a major profit opportunity by investing in uranium. But not all uranium investments are equal.
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