As the population explodes and fuel sources dwindle, the world will likely turn to nuclear power as a solution. That means an increased demand for uranium. The experts at Investment University show you how to profit from the uranium boom.
The world’s population is growing exponentially. To many people, concerned about the earth’s ability to feed and house the burgeoning ocean of humanity, this fact is sobering. But to certain (visionary and profit-minded) others, it’s deeply promising. Very shortly, more than 9 billion people will need electricity. And there just isn’t enough coal and oil to supply that need. Yes, a worldwide fuel crisis – one that dwarfs the great oil shortage of the 1970s – is on its way. In fact, supplies of one fuel in particular are in such high demand, it’s created a shortage 139 times bigger than oil. And the experts at Investment U say very few investors know – or even understand – the size and scope of this opportunity.
“Take notice,” says Mark Whistler, coauthor along with Alexander Green, Horacio Marquez, and Louis Bass of Investment U’s Profit from Uranium: How the “Largest Buildout” in the History of Energy Could Hand Investors 435% or More (Wiley, 2006, ISBN: 047012234X). “The supply of uranium, the raw stuff that creates nuclear power, is already so short that worldwide prices have doubled in twelve months, tripled in twenty-four months – and are soaring higher by the day.”
That’s right. According to Whistler and his coauthors – who are also members of Investment U, a research team that delivers independent, no-nonsense investment advice regarding how to build long-lasting wealth-uranium is 240 times more valuable than oil. It’s 1,687 times more valuable than coal and hundreds of times more valuable than aluminum … or lumber … or concrete … or any other type of commodity that China is devouring to build its infrastructure. And it could be very valuable to you, if you make the right investments now.
Furthermore, unlike the situation with oil, there isn’t a “cartel” (think OPEC) that controls the price of uranium. It’s negotiated freely in the markets on a weekly basis, between miners, enrichment companies, and end users.
“At the end of the day, the price of uranium is controlled by ‘supply and demand,’ which should keep the price moving only higher in the years to come,” says Whistler. “In fact, right now, existing facilities can’t mine uranium fast enough to keep up with demand. It’s a supply-gap squeeze, the likes of which have never been seen in peacetime for any commodity.”
The investment experts at Investment U say there are four indelible reasons uranium demand will continue far into the future, thus making it a sound and profitable investment. They are:
- Global warming: The environment desperately needs a solution to the problems caused by a century of burning fossil fuel.
- The depletion of fossil fuels: The Energy Information Administration predicts that total global consumption of energy will grow 57 percent from 2002 to 2025 – fueled by the world’s population growing at an exponential rate. It’s essential for the world to find a solution to the growing population-energy demand crisis, and the environmental damage being caused by fossil fuels – nuclear energy provides a potential answer.
- Coal – the world’s dirtiest natural resource: Coal is one of the largest greenhouse gas-emitters, creating sulfur dioxide and nitrogen oxide – both of which create smog and damage the ecosystem. And coal is one of the single-largest contributors to acid rain, which can transfer mercury to our water systems.
- The surge in production of nuclear reactors: The world is building new nuclear reactors at a never-before-seen rate. In fact, it’s been predicted that there will be over 2,600 nuclear reactors in operation by 2030.
“The future of nuclear power has never looked more promising,” says Whistler. “Look at a country like China. Its population is growing exponentially and it is desperately trying to find a way to provide energy to all of these people. China has committed to spending $50 billion on building more than thirty new nuclear reactors. And according to the Australian Foreign Ministry, with whom China’s been negotiating, uranium imports to China are due to increase from 2.5 million pounds per year to a staggering 44 million pounds per year – a 1,760 percent increase. Now is the time to invest in uranium while prices are still relatively low.”
The experts at Investment U know that uranium may not be the first thing that comes to mind when you are thinking up your new investments. That’s why they explain the best picks for you in their new report, Profit from Uranium. The report teaches experienced and inexperienced investors alike different ways to get involved in uranium, from investing in uranium mines to uranium suppliers and even explaining how an act of Congress could lead to huge profits for you if you take advantage of it now. If you aren’t quite convinced that the uranium boom is truly on, consider these facts:
- Nuclear reactors now supply 16 percent of the world’s total power.
- In addition to the boom in China (BusinessWeek calls it the “largest buildout” in the history of energy), twenty-three new nuclear reactors are under construction in ten countries.
- A whopping 441 power plants in thirty-six countries now depend on uranium to run steel plants, auto assembly lines, mass transportation, and thousands of factories that make everything from women’s dresses to bobble-head dolls.
- Nuclear power now heats, lights, and cools an estimated 350 million homes and businesses worldwide, powering computers, bank transactions, telecommunications-and even a third of all the schools in Europe and the industrialized nations.
- Fifteen reactors in the United States have been granted licenses to extend their operating lives from forty to sixty years … and most others are expected to apply for the same extension.
- Environmental groups are embracing uranium as a clean, economical, and sustainable alternative to burning fossil fuels.
There is no doubt that uranium is one of the best, little-known investments that you can make right now. The uranium shortage is getting worse, with no way to turn on the supply spigot. Power companies are hoarding uranium as China is doubling the world’s nuclear output. Uranium prices are climbing at a rapid rate. Even at modest estimates, returns on the right companies are likely to run 2,800 percent to 1,224.8 percent in the coming months. Simply put: uranium is a hot commodity.
“One thing is clear: the consumption of uranium is not something to just sit back and think about for the future,” Whistler asserts. “The boom is here, and it’s not likely to abate any time soon. Who knew helping the environment and making a great investment would be one in the same? It just so happens that today’s economic environment and its actual environment are in sync on this issue. Uranium helps the environment, and as it turns out, it is one of the best investments you can make right now.”
Alexander Green is investment director of The Oxford Club. A Wall Street veteran, he has more than twenty years’ experience as a research analyst, investment advisor, and professional portfolio manager. Mr. Green has been featured on The O’Reilly Factor, profiled by Forbes and Marketwatch.com, and has written for Louis Rukeyser and several other leading financial publishers. He currently writes and directs The Oxford Club Communique, the Oxford Insight e-letter, and three elite trading services: The Momentum Alert, The Insider Alert, and The International Trader Alert. He also coedits The Oxford Short Alert with Louis Bass. Alex is a top-rated speaker at financial conferences throughout the world.
Horacio Marquez is editor of the Money Map Advantage, and has more than twenty years of experience in global finance activities on Wall Street, in major U.S. fund management companies, and independently. Mr. Marquez was head of emerging markets research for Merrill Lynch Asset Management’s fixed-income funds, director and head of economic and financial research-Latin America for Swiss Bank, and head of credit and research for ADP Capital Management. In these capacities, while managing billions of dollars, he correctly foresaw and took very large advantage of the Argentine fiscal crisis of 1994, the Mexican maxi-devaluation later that year, the Asian crisis of 1997, and the Russian crisis of 1998. He got out of Enron, WorldCom, and many others without losses well before they defaulted and foresaw the ensuing U.S. recession and recovery. Mr. Marquez has also worked independently in M&A, in venture capital and in debt financing in Latin America and in the U.S. He holds an M.S. in industrial administration from Carnegie-Mellon’s Tepper Business School.
Louis Bass is the editor of the Hot IPO Trader, an alert service uncovering the hottest and most potentially profitable IPOs. He’s also the editor of the Takeover Trader alert service, targeting takeover candidates poised for triple-digit gains. As an advisory panelist for The Oxford Club, Lou is also the coeditor of the Oxford Hedge Trader and is a regular contributor to the Club’s twice-monthly Communique. Lou spent years with one of the country’s leading investment and brokerage firms as a top analyst and trading expert, specializing in corporate takeovers and IPOs that led to large profit opportunities for investors.
Mark Whistler writes and conducts research for The Oxford Club and Mt. Vernon Research, is the author of the recently released book Trading Pairs (Wiley, 2004), and is one of two creators of PairsTrader.com. Mark is presently working on his second book on market psychology for Wiley, expected to be on shelves in early 2007. Mark writes a regular column for TraderDaily.com in New York and also writes for Investopedia.com in Canada, for whom he recently finished a Series 63 study guide. A few of his other writing credentials include: The Motley Fool, Active Trader Magazine, BullMarket.com, OptionInvestor.com, and Working-Money Online.
Investment U’s Profit from Uranium: How the “Largest Buildout” in the History of Energy Could Hand Investors 435% or More (Wiley, 2006, ISBN: 047012234X) is available at bookstores nationwide, major online booksellers, or direct from the publisher by calling 800-225-5945. In Canada, call 800-567-4797.
For more information, please visit the archives at investmentu.com, Issue #623.
See Also: Twelve Timeless Rules of Investing