Ever since the Fukushima disaster of 2011, uranium has been vilified by the mainstream media.
Uranium prices crashed… and a ton of uranium producers went out of business.
Fearmongering claims ran the gamut, from “uranium is bad for the environment” (untrue)… to “another similar leak could lead to an apocalyptic event” (not going to happen).
But now, the media has suddenly changed its tune…
Today, uranium is being touted as one of the cleanest, cheapest, most reliable energy sources out there (all true).
So what’s behind the shift?
Simple: It’s becoming abundantly clear that nuclear power will play a critical role in future global energy supply.
In fact, we’re at the beginning of a multi-year bull market in uranium.
Today, we’ll explain why uranium demand is suddenly surging… and how to play the situation.
Let’s start with a recent, groundbreaking piece of legislation…
Democrats and Republicans agree on one thing…
Whoever said bipartisan legislation is dead?
On July 9, President Biden signed the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act into law…
Put simply, the legislation aims to dramatically increase new uranium production by building out new reactors.
The bill received massive support from both sides of the aisle: The Senate passed it with a vote of 88 to 2… and the House by a vote of 393 to 13.
Given just how divided our country is on nearly every major issue… that should give you an idea of the importance of uranium.
So what exactly is driving this bipartisan support?
3 catalysts for nuclear power
For one thing, uranium is the obvious solution as the globe focuses on transitioning to clean energy and combating climate change. The drilling infrastructure is already in place, as uranium is a byproduct of oil excavation.
For another, energy demand is about to skyrocket… thanks to the emergence of artificial intelligence and other cutting-edge technologies. In recent history, energy demand has remained flat year over year… Now, it’s projected to grow at 2–3% annually for the foreseeable future. Uranium is one of the few sources that can reliably provide the power to sustain that demand.
What’s more, there are geopolitical factors at play…
Last month, Kazakhstan—which supplies over 40% of global uranium—announced that it tripled its uranium mining taxes from 6% to 18%. This will constrain supply and drive prices higher, benefiting uranium producers outside of Kazakhstan.
The bottom line: Several major tailwinds will drive the bull market in uranium over the long term…
And smart investors stand to profit.
How to play uranium’s upside
Look for industry leaders with strong fundamentals and infrastructure already in place. Companies that proved resilient following the Fukushima disaster are a good place to start.
And avoid lesser-known companies, which often have high development costs and limited production capabilities. Also, steer clear of companies in politically unstable regions, where major regulatory hurdles can hinder growth.
By focusing on well-established players, you can position yourself to profit from uranium’s significant upside.
In this episode of WSU Premium, Frank revealed a couple of his favorite uranium plays… and one stock he believes will soon go to $0.01.
