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By Curzio ResearchSeptember 30, 2024

Uranium is at an inflection point

Uranium

The uranium market has been on fire in recent weeks. And this surge isn’t just a fleeting market trend…

Put simply, the uranium market is at an inflection point. After years of stagnation and skepticism, the industry is poised for significant growth for the foreseeable future.

Let’s delve into the factors driving the “uranium renaissance”… and explore how investors can position themselves to benefit from this long-term secular trend.

A change in public perception

For years, the uranium industry has been battling negative public perception. The narrative centered around the idea that uranium was bad for the environment—and that another Fukushima disaster was inevitable.

We now know that’s not true.

Today, uranium is finally being recognized for what it is: one of the cleanest, cheapest, most reliable energy sources in the world.

What’s more, politicians on both sides of the aisle have gotten on board…

The Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, which President Biden signed into law this summer, received massive bipartisan support. The Senate passed it with a vote of 88 to 2… and the House by a vote of 393 to 13.

This shift in public (and political) opinion is paving the way for a more rational approach to nuclear energy.

And that’s great news, considering the massive boom in energy demand…

Rising energy demand

As cutting-edge tech like AI takes the world by storm, energy demand is absolutely surging… and energy security is becoming more critical than ever.

Uranium is the obvious solution. 

In addition to being eco-friendly, all the infrastructure is already in place, as uranium is essentially a byproduct of oil drilling.

Major corporations—and the big tech hyperscalers in particular—are recognizing the potential of nuclear power. Microsft just signed a 20-year purchasing agreement with Constellation Energy. 

This is huge news. Big tech names are building out massive data centers to support their growing energy needs, representing a massive source of long-term demand.

It’s also worth noting that across the board, the United States accounts for 30% of the world’s uranium consumption.

Right now, we import more than 95% of our uranium… But that’s about to change. The U.S. is ramping up production to levels we haven’t seen since the 1980s. This will reduce geopolitical risks surrounding our energy sources, shore up our energy security, and add to the uranium market’s momentum.

How to profit from uranium’s upside

Investors should look for companies that have been diligently building assets and teams during the market downturn. Pay attention to companies with properties in favorable jurisdictions, particularly within the United States. As domestic production becomes a priority, these assets could become increasingly valuable.

In the latest episode of WSU Premium, Frank revealed two of his favorite stocks to play uranium’s incredible upside. Here’s how to access them.

The bottom line: After years of stagnation and skepticism, the uranium industry is poised for growth—driven by changing perceptions, increasing energy demands, and a renewed focus on energy security. 

Investors who position themselves wisely now will reap the rewards.

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