Uranium Price Hits 2 Year High: The NEW Yellow Metal In Town

By: Jeb Handwerger | Tue, Nov 30, 2010
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In 1883, an historic cataclysm of 10 days that shook the world and vaporized Krakatoa, an island between Java and Sumatra. An umbrella of ash rose 50 miles high and sent sonic reverberations 7 times around the world. Deaths numbered 120,000. Scientists of that time were awed by the magnitude of nature's forces that were being unleashed. They speculated that one day ways would be found to harness this energy. Even The Bible concurred with the physicists that all inert matter contained particles of energy that if harnessed could provide inexpensive and abundant energy to replace the coal, steam and oil that fueled the industrial revolution of that era. Now if Faraday's and Boyle's could return to 2010 they could witness the fulfillment of their most visionary dreams with the advent of The Nuclear Age.

International demand for U2O6 is rising. Knowledgable investors who made a killing when uranium reached a $136 a pound in June 2007, are once again in the accumulation mode. The Russians, Koreans, and particularly The Chinese are investing in joint ventures all over the world to gain control of future supply. In fact our contract for Russia dismantled nuclear warheads expires in 2013, not far away. This will further exacerbate the supply and demand deficit. China is likely to purchase off take agreements with uranium miners who do not have any. It is important to find the miners who are in the drivers seat. This is the miners market to catch a solid big at higher levels. Certain miners who are close to production with uranium that is not yet purchased are setup to reap the benefits of this hot sector.

Recently, U2O6 hit a 24 month high of $53.50 a pound. Typically, when uranium begins to make its upward move it does so with atomic force giving large profits to the lucky holders. It is interesting to note that only 8 mines in the world yield more than fifty percent of global production. Moreover, in reality there is not a lack of uranium deposits, but there is a lack of assets that possess production potential. Already in the United States there are a 104 plants with more coming. China has eleven plants and are constructing another twenty eight reactors. This does not include the facilities existing in France, Germany, Japan, Iran, among others. Today's nuclear plants are sophisticated, safe and efficient far removed from the fossils of yesteryear. My readers through my premium service are enjoying triple digit profits even at this early stage. As uranium shortages mount I will continue to give my readers additional profitable opportunities for their consideration. Just as profits have been made by my readers in the small gold miners, so do I feel that certain small uranium miners are ripe as cherries for the picking.

As gold got overbought in October and I saw a coming rally in the U.S. dollar, I alerted my readers to the junior uranium miners in Wyoming as many miners were expected to receive licenses. Some of the miners out of Wyoming have made huge percentage gains such as Uranerz (URZ), UR Energy (URG), Cameco (CCJ) and Uranium One (UUU:TSX) as mines have begun to receive permits to begin operation. Earlier Uranium One (UUU) received its NRC license on its Moore Ranch Project and last week Uranerz (URZ) received its draft licenseon its Nichos Ranch project.

URZ Index

Uranerz has doubled in the past month. Other miners should be receiving their licenses shortly and should be rerated by Wall St. There are thirteen other mines being developed in Wyoming. Wyoming produces the largest amount of domestic uranium with Cameco's (CCJ) Smith Ranch Mine which is also the largest U.S. facility. Not all of these mines will move to production and only a select few have no local opposition and other key permits.

 


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Jeb Handwerger

Author: Jeb Handwerger

Jeb Handwerger
http://goldstocktrades.com

Jeb Handwerger

I started reading charts at eleven years old. One day my father, a market trader and technician found his library of books on technical analysis mysteriously disappearing. He later found the textbooks under my bed. For many years day and night I studied technical analysis and charting, working and learning from my father who has over 50 years of trading experience. Technical analysis is my passion and love.

In 2001, I started noticing the junior mining stocks and gold as having a tremendous upside. For the past 9 years I have researched many juniors and have identified the major winners using technical analysis and finding top management.

I earned a Bachelors Degree in Mathematics and a Masters Degree. I learned most of my technical analysis from the school of hard knocks, managing real money for myself and for my family.

Constantly perfecting my craft, I have traded for two decades of success in many different markets. I have been asked to post ideas to some of my students who have taken my course in charting and technical analysis. I have made an excellent living trading stocks for myself.

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